IFB Welcomes Liability Fraud Crackdown
26 September 2014
The Insurance Fraud Bureau (IFB) has welcomed the latest ‘day of action’ by the City of London Police’s Insurance Fraud Enforcement Department (IFED), praising their crackdown on liability fraud.
The ABI estimates that detected insurance fraud costs around £1.3 billion each year, with a further £2.1 billion going undetected, adding around £50 to the cost of household insurances. While the IFB was originally established to focus on organised motor fraud, its experience in this field has uncovered signs of a wider problem.
Ben Fletcher, IFB Director:
“We know from our operational experience that there’s no such thing as ‘product loyalty’ and that fraudsters will target different product lines if they think there’s an opportunity.”
“Hopefully IFED’s day of action will not just bring fraudsters to justice, but will also raise awareness of the issue both within the industry and without.”
“The notion that all ‘trip and slip’ frauds are individual and opportunistic is sadly not true. We are seeing signs that criminal gangs who recruited participants in ‘Crash for Cash’ scams are taking the same approach to liability fraud."
Mihir Pandya, Fraud Manager at Allianz UK and Chair of the IFB’s Technical Board said, “It should come as no surprise that fraudsters are targeting liability claims as a means of making easy money. IFED’s decisive action is absolutely the right thing to do and sends a clear message that liability claims are not a soft target for fraudsters.”