Six motor car insurance fraudsters have been charged in connection with a “cash for crash” scheme in Lancaster, according to reports by the BBC.
Five Blackburn men and one woman (also from the Lancashire town) have been charged with defrauding car insurance companies from a scheme dating back to earlier last year. All six are scheduled to appear on February 4th before Blackburn Magistrates’ Court.
Lancashire has been a hotbed of cash for crash fraud in recent months, making it harder for honest drivers to obtain discount car insurance. Just this past August, Rehan and Rezwan Javed were tried and found guilty of fraud at Manchester Minshull Street Crown Court.
The fraudsters owned and operated the North West Claims Centre, an insurance claims management firm based in Burnley. Their criminal activities came to light when Cheadle Hulme office workers noticed that the same driver frequently became involved in minor accidents at a roundabout located nearby.
An investigation was launched by the authorities in order to examine the actions of the claims management firm. The investigation revealed that in excess of 80 road traffic accidents were supposedly staged by the brothers Javed and their associates.
While the amount of fraud perpetrated by the two brothers is quite high, criminal behaviour is much worse in other regions of the UK. Cash for crash schemes are even more common in Birmingham, which has the dubious honour of being the city with the most criminal activity, according to the Insurance Fraud Bureau. The insurance industry body also listed London North, Bradford, London East, Manchester and Liverpool as some of the worst regions in the UK in regards to the incidences of cash for crash insurance fraud.
Industry experts agree that honest drivers pay for the rising costs associated with paying out fraudulent claims through heightened annual premiums.