Fronting and related fraud on the rise says FLA

One motor car insurance and car finance industry body has indicated that incidences of fronting and related fraud have been on the rise recently.

The Finance and Leasing Association stated that more and more motorists have been trading places with the registered finance or discount car insurance applicant in a bid to game the system.  Individuals with poor credit scores or with offences on their driving record that would result in exorbitantly high car insurance rates instead find a willing person with pristine records to be the person of record on the policy or lease agreement.

Fronting has become highly organised recently, reported the FLA  Fraudsters routinely engage in identity theft of a person with a positive insurance record or credit score.  They then use the identity to apply for finance on behalf of an individual that could never hope to procure funding due to a myriad of reasons.

Despite this increase in fronting behaviour, motor car insurance fraud seems to be declining overall.  Figures indicate that the total costs of motor fraud cases fell at a rate of 17 per cent year-on-year from the third quarter of 2010.  More remarkable was the decline in volume of fraud cases by 24 per cent.  FLA members found the 12 month period from September 2009 saw the prevention of suspected or attempted motor fraud cases valued at approximately £125 million.

FLA motor finance head Paul Harrison stated that the organisation was well on its way to winning the fight against motor fraud.  This has been facilitated by closer partnerships and cooperation with the police, Said Harrison.  The FLA official also remarked that the organisation remained committed to the protection of innocent motorists by clamping down on instances of fronting.

Much of the fronting fraud in the UK is conducted by organised crime in order to secure finance for a vehicle that will be used in the commission of crimes.

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