Keoghs fraud rings and intelligence teams have combined with LV=, AXA and 1st CENTRAL to identify a complex network of organised fraud involving deliberately induced accidents, with the operation saving over £1.2mn to date, and five recent litigated cases alone saving around £1m.

The accidents all involved similar circumstances with the insured driver travelling behind the claimant, who would then brake excessively, alleging that a vehicle had pulled in front of them or that they were slowing for traffic. The insured drivers all identified that the actions of the claimants were unnecessary and left them unable to avoid a collision. In order to maximise the fraud, the claimants would ensure there were passengers in their vehicle at the time of the accident.

Following a forensic review of intelligence and dashcam footage, Keoghs and the three insurers identified significant commonalities and links between the claimants across five claims, including the same solicitors, credit hire companies and engineers.

Keoghs was able to identify that one of the claimants had 16 accidents in a seven year period, 10 of which were rear impacts. Dashcam footage revealed that one of the vehicles involved was actually hired by another of the claimants within the scam. Investigations also included evidence that the claimants had incepted insurance policies in close proximity to the accidents in furtherance of the fraud.

The five litigated cases resulted in savings of around £850,000, with the enforceable costs orders totalling in excess of £115,000 plus the additional recovery of interim payments made to the claimants. When passenger claims are added, savings over the five accidents are expected to exceed £1m. To date savings on the operation as a whole are in excess of £1.2m.

Matt Crabtree, head of fraud strategy at LV=, said: “This fantastic result demonstrates the benefits of working collaboratively across the industry to tackle organised fraud, to find connections between the parties who are working together. Organised criminals cause a real risk to members of the public, slamming on their brakes to induce collisions and pursue fraudulent claims. This outcome, supported by Keoghs, highlights why we’re committed to tackling fraud, by defending these claims and pursuing those responsible for the costs.”

Tom Wilson, senior counter fraud operations manager for AXA, added: “We’re pleased with the positive outcome of this case and hope this example acts as a deterrent to those who consider repeating these actions. This type of fraud is dangerous to innocent motorists so it is essential that we collaborate across our industry to bring perpetrators to justice.

“Insurance fraud is a serious crime which has significant consequences for fraudsters. Fraudulent claims result in higher insurance premiums for honest customers as insurers are faced with increased costs. That’s why AXA works hard to prevent fraud by investigating suspicious claims and by taking fraudulent claimants to court when necessary.”

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