A new variation of “crash for cash” scams involves fraudsters lurking on residential roads and forcing drivers to give over cash following staged collisions.
Drivers are warned of a new crash scam in which con artists loiter on residential roads, stage phony collisions, and demand cash from drivers.
The new scam involves con artists causing a fall for cash.
Con artists accuse motorists of damaging their wing mirror, then become menacing and demand immediate payment.
The police report that this occurs frequently on residential streets.
The fraudster tosses a rock at the victim’s car to make a crash sound.
They then flash their lights to halt the victim and accuse them of damaging their already damaged wing mirror.
The con artist demands cash from the chauffeur or forces them to visit a cash machine.
In some instances where the victim refused to give over money, the offender physically intimidated them.
Several insurers, along with the Insurance Fraud Bureau (IFB) and the City of London Police’s Insurance Fraud Enforcement Department (IFED), issued the fraud warning.
The IFB and IFED are investigating over 40 incidents in which innocent people appear to have been targeted. But they are concerned that hundreds of cases may go unreported because individuals do not recognize the fraud techniques.
Also IFB director Ursula Jallow stated, “Clip for currency is a growing threat to drivers”.
These fraudsters deceive unsuspecting motorists into believing they’ve caused genuine harm and then use pressure tactics to obtain cash from their victims.
“Because little is known about this new type of fraud, drivers are more susceptible to falling victim.”
Some insurers reported that youthful and elderly drivers are being targeted.
Even if a legitimate collision has occurred, money should never be given at the scene, according to police.
If someone is accused of damaging a wing mirror, insurance information must be exchanged as required by law. If there is an imminent hazard, the police should be contacted.
