According to recent news, cash or crash frauds are cheating insurance companies of more than 200 million Euros by deceiving naïve motorists in counterfeit car accidents. These hackers lure huge motorists to crash on the backside of vehicle and then claiming for injuries and damages.
Each false crash results approx 30,000 Euros and the overall problem is increasing at a tremendous rate with about 65,000 staged every year. So, for resolving this increasing problem, car insurance companies are setting up some units like IFB, insurance Fraud Bureau to deal with fraudsters.
IFB in conjunction with Police operation have checked this problem; recently, 13 defendants were jailed for 10 years by ST Albans Crown Court for scheme of deceiving insurance companies with two year investigation by IFB and Hertfordshire’s serious and Organized crime group.
It has been also reported out that these fraudsters are having the possessions of other driver’s insurance premiums by approx 5%. FBI has also revealed that the amount derived from staged accidents are being used to fund other crime activities like gun running and drugs dealing.
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