Insurance Fraud Victims Revealed

It’s not surprising that insurance fraud increased dramatically during the pandemic’s peak, but the latest TransUnion survey shows that the trend hasn’t abated since then. The figures have actually deteriorated.

Because of the cost of living crisis, people are cutting back on spending and looking for better deals. As a result, more people are vulnerable to cheap but phony insurance.

73% of those polled said they had been the victim of a scam in the previous three months. These scams ranged from deceptive claims to outright fraud schemes. Aviva UK announced at the end of August that the number of fraudulent claims would increase by 13% to more than 11,000 by 2021.

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In terms of daily figures, the total is equivalent to 30 fake claims per day, with each claim worth a whopping £336,246.

According to Aviva, 60% of all fake insurance claims are for car insurance, and “ghost broking” accounts for 15% of the 20,000 applications for car insurance. This practice has become common in the industry, with scammers posing as insurance intermediaries to purchase insurance policies for victims using false information and then canceling them immediately.

Fraudulent claims for home insurance increased by 45%, property claims increased by 20%, credit hire and repair claims increased by 13%, and public liability claims increased by 12%.

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The UK’s Financial Conduct Authority (FCA) has warned that as living costs rise, financial crime will become “even more prolific.”

In September, FCA executive director Sarah Pritchard stated, “They will adapt to exploit new weaknesses in the financial system.” “When targeting the vulnerable for fraud, they will constantly change their tactics.”

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