Crash for Cash: Moped Scams on the Rise

Recent reports reveal a dramatic increase in "crash-for-cash" scams involving moped riders, with incidents up by an astonishing 380% over the past year. These scams, where fraudsters stage accidents to make false insurance claims, have been primarily driven by the rise of pay-as-you-go insurance for delivery drivers.

According to Direct Line, the ease of obtaining insurance for mopeds has allowed scammers posing as delivery riders to exploit the system. Sarah Cashford, Intelligence Manager at Direct Line, highlighted that the introduction of hourly insurance policies has made it easier for these fraudsters to target innocent motorists.

In these scams, moped riders deliberately cause accidents by hiding on side roads or parking spaces, then suddenly driving into oncoming traffic. They quickly brake, throw their moped to the ground, and fake an injury, often taking photos to back up their claims. This method is gaining popularity because mopeds are cheaper to buy and insure than cars, making them the vehicle of choice for fraudsters.

Stuart Stevens, Head of Intelligence at Direct Line, explained that the rise in such scams is also linked to changes in the law, making it easier to claim compensation for injuries and vehicle damage from moped accidents compared to car accidents. The whiplash reforms, which have made it harder to claim for minor injuries in car accidents, have encouraged fraudsters to switch to moped-based scams.

Direct Line's analysis indicates that these fraudulent activities are adding up to £50 to the average motor insurance premium. The increase in scams has led some drivers to adjust their routes to avoid being targeted, particularly around roundabouts, which are common hotspots for these fraudsters.

The fraudsters often target quiet areas where there are fewer witnesses, and may aggressively demand insurance details from the victim, insisting they are at fault. Drivers are advised to always take details from potential scammers and verify them on the spot by checking vehicle registrations or calling their insurers.

To protect themselves, many drivers are turning to dash-cams for evidence, but Direct Line recommends carrying a mobile phone to take photos or video footage of the scene, which could be invaluable in defending against a fraudulent claim.

In 2023, "crash-for-cash" incidents accounted for 11% of all fraudulent motor insurance claims, surpassing even "ghost-broking" scams. The rise in fraudulent motor claims, often linked to organized crime, has seen a sharp increase this year, further emphasising the importance of vigilance on the roads.

The Johnson Partnership

Nottingham Crime Solicitors