Moped Scams: A Rising Trend of Deliberate Crashes for Cash

A leading insurer has recently reported a significant increase in ‘crash for cash’ scams involving moped riders intentionally colliding with cars to exploit insurance policies. Allianz, the insurer, has witnessed a sixtyfold rise in such incidents in 2023, with London being the most affected area.

London: The Epicenter of Moped Scams

Among all the areas in London, south London has been hit the hardest, accounting for 42% of reported incidents. Wallington, a neighborhood in the borough of Sutton, has become a prime target for these scams. In response, residents have created a WhatsApp group to share information and reports.

Ros Karamath, a member of the group, shared her personal experience. Last year, while waiting at a junction in her Hyundai i20, a moped rider stopped the traffic and signaled her to proceed. As she started moving, another moped rider collided with the front of her car. The rider quickly took photos of the scene while the other rider fled. Karamath managed to capture the insurance policy and registration number of the rider’s bike.

According to Karamath, the fraudsters often target lone women drivers and some even demand cash. However, their primary motive is to claim personal injury compensation. Karamath believes that the scammers have now moved on from Wallington after victimizing around 20 members of the WhatsApp group.

Matt Crabtree, head of financial crime intelligence and investigation strategy at Allianz, confirms that these criminal gangs frequently change their tactics and locations to avoid detection. They operate in small clusters across wider areas.

Cracking Down on Moped Scams

In an effort to combat this rising trend, the City of London Police’s Insurance Fraud Enforcement Department (IFED) is collaborating with Trading Standards officers to identify rogue businesses involved in repairing damaged mopeds and scooters. Recent joint operations have resulted in the seizure of mopeds used in crashes and numerous number plates used to disguise bikes. The IFED is also working on establishing connections between suspected garages and individuals profiting from these crimes.

The Insurance Fraud Bureau (IFB) estimates that the value of fraudulent bike claims has exceeded £27 million. Many unsuspecting motorists have fallen victim to these scams without realizing it. Jon Radford, head of intelligence, investigations, and data services at the IFB, urges the public to remain vigilant and collaborate with insurers and the police to bring these fraudsters to justice.

Protecting Yourself from ‘Crash for Cash’ Scams

It is crucial to take precautions to avoid becoming a victim of ‘crash for cash’ scams. Here are some tips:

1. Be vigilant

Stay alert for any unusual driving behavior, especially at junctions.

2. Document the scene

Take photos of the suspected fraudster’s motorbike and your own vehicle for evidence.

3. Get details

Make a note of the rider’s information, vehicle registration, and vehicle description.

4. Collect evidence

Look for witnesses and check nearby CCTV, dashcam, and doorbell cameras for additional evidence.

5. Contact your insurer

Inform your insurer about the incident and report any suspicions to the Insurance Fraud Bureau Cheatline.