'Crash for cash' scammers are a major issue for everyday motorists, fleets, and insurance companies. What these scammers basically do is they’ll deliberately cause an accident that looks like it’s your fault, hoping to scam you or your insurance for multiple claims.
When you don’t have any proof or witnesses’ it can be difficult to actually prove your innocence when an accident does essentially look like you caused it. According to Garth de Klerk, the CEO of the Insurance Crime Bureau in South Africa, “Insurance fraud is a hidden crisis costing the industry billions, inflating premiums, eroding trust, and impacting honest policyholders.”
This is why it’s important for every road user to invest in a proper dashcam that can help prevent these false claims from happening. This blog explores what cash for cash fraud is and how to prevent it, so keep scrolling to find out everything you need to know to protect yourself from these fraudsters.
‘Crash for cash’ fraud is when someone deliberately causes a minor accident to get a payout from you or your insurer. These staged scams usually include fabricated personal injuries to increase the amount they get paid out. If you don’t have any evidence to prove that you were innocent, unfortunately the claim falls on your or your insurers' shoulders.
It’s important to know that many times these scam artists aren't working alone. They have a team which can include physicians, tow truck drivers and mechanics to all get money out of the scam.
There are multiple ways in which this scam is pulled off; let’s take a detailed look at each of them.
The swoop & squat is when two vehicles are involved in the ‘crash for cash’ scam. One vehicle will swoop in front of the squat vehicle, resulting in the squat vehicle slamming on its brakes. This will ultimately cause you to rear-end the squat vehicle.
Oftentimes when you get involved in a ‘crash for cash’ accident, it’s with a car full of people all claiming injuries from the accident. On top of that, sometimes you’ll get tow truck drivers or even fake doctors involved in the entire scam, providing records that “prove” the accident was way worse than it actually was.
When an unsuspecting driver is waiting to turn at an intersection, the scammer will pretend to give you a gap to cross. Once you start to cross over, the scammer will accelerate and bump into your car.
The fraudster will drive in front of you and slow down till you’re close behind them. Once you’re close enough, they’ll slam on their brakes, causing you to drive into them.
This is when a scammer will jump in front of your vehicle, onto the bonnet or on the side of your vehicle to make it seem as if you hit them. They will then either claim from you or your insurance for their “injuries”.
A scamming pedestrian will slap the bonnet of your car with their hand and drop to the ground. They'll then claim that you hit them with their car.
This is when a scammer does one of the above scams and tells you not to put this through insurance and to just give them cash to fix their car or to go to the doctor. This way you can (seemingly) both walk away from the incident.
The main targets of ‘crash for cash’ scams are usually luxury/high-end vehicles, delivery vehicles, corporate fleets or trucks. That’s because these targets seem to either have money or premium insurance. Another reason businesses are targeted is because fleet drivers are usually trained to avoid confrontation.
When someone is involved in any type of accident on the road, it can affect them in multiple ways. For the everyday motorist it can deeply traumatise them and anyone they had in the car with them. It also causes a world of headaches because now you have to get an affidavit, make a claim, pay excess, and wait for your car to be repaired.
For businesses it can severely push up their insurance premiums, even though you’re not at fault. It can also cause unnecessary stress for your drivers, and if your vehicle needs to go in for repairs, it causes operational downtime.
If you or your business doesn’t have insurance, you’re going to be paying out of pocket for repairs and medical bills that you shouldn’t have to.
So how can you avoid these ‘crash for cash’ scams? The best thing you can do is invest in technology that’s designed to keep you protected. Telematic systems and AI cameras are the perfect solution for fleets, while a dual-facing or just a road-facing dashcam is great for everyday motorists.
Telematics systems are needed for fleets for multiple reasons, but in a ‘crash for cash’ scam they provide valuable insights that can assist in a dispute. Telematics accurately monitors speed, braking intensity, and the exact moment of an impact.
The data you can pull from this can prove that your driver wasn’t speeding and maintained a decent distance from the other vehicle, as well as provide evidence that the braking was unprovoked and erratic.
Crash detection is a great feature with Cartrack’s telematics system that will immediately detect when an accident happens. and emergency services or roadside assistance will be sent to your driver’s location. This can prevent the scammer from making a false narrative when the authorities arrive.
AI cameras are vital for fleets in ‘crash for cash’ scams. Having multiple cameras in and around your vehicle can put an immediate stop to these scams. You’ll have indisputable evidence that proves that:
For the everyday motorist who is just commuting to and from work, the gym or school pickups and drop-offs, a Cartrack dashcam is the perfect solution for ‘crash for cash’ scams. First of all, having a visible dashcam can deter these scammers from targeting you.
Second, if they do cause an accident or throw themselves onto your vehicle, a road-facing dashcam can instantly prove that you weren’t at fault, and their fake claim will be thrown out.
If you don’t have a dashcam or telematics to help you out, what can you do to protect yourself? While having a dashcam is obviously the best thing for this scam, here are some of the things you can do.
Even though these crime syndicates are becoming more sophisticated, technology is advancing even faster. With Cartrack you can instantly disprove a fraudulent claim with comprehensive telematics data and top-of-the-range AI camera solutions.
So get in contact with one of our highly trained agents to keep yourself safe on the roads of Mzansi!
What is 'Crash for Cash' fraud? Discover how these staged accident syndicates operate in SA and how to protect your vehicle or fleet from costly scams.
