Hitting back at the fraudsters

An old scam has shown its face again. In a recent sample check of 46 suspected induced accidents received in the last 12 months, our Commercial Claims Crime Prevention team has identified London, Birmingham and the North West as being the most common areas for carrying out the scam.  Other hotspots have been identified as junctions and roundabouts inside the M25. We want to help you limit your exposure to this type of claim and have detailed some advice and guidance on what to look out for.

The scam

Known as the ‘Slam On’, fraudsters attempt to induce a rear hit accident targeting innocent motorists. The scam has evolved over the years with many different tactics used to add some legitimacy – including a ‘decoy’ vehicle to evidence the need to brake sharply.

Fraudsters often target commercial vehicles as there’s a belief the vehicles will be insured on company policies and pay-outs will be hassle free.

In the simple example shown here the red car (fraudster) will cut in front of the blue car (fraudster) which brakes sharply inducing the cream van (victim) to hit it from behind, causing a ‘slam-on’.

The blue and red vehicles will be operating together. We’ve also seen, in some instances, the ‘decoy’ vehicle drives off but then returns to the scene to act as an independent witness.


Induced accident diagram – how it’s staged

Some things to consider

  • Identify the accident circumstances and whether the accident has been orchestrated
  • A ‘hit in rear’ might not always be a fault accident – listen to full circumstances
  • Capture the details from the driver as early as possible
  • If the vehicle was fitted with a Dash Cam – obtain the footage as this can be valuable evidence
  • If in doubt – refer! Intelligence searches from our CCPT handlers to link fraudsters to other accidents/crimes

Why we need to watch out for these claims

Our Claims Crime Prevention Team has successfully defended 239 suspected induced claims this year, reducing increased expense to both out businesses. You can help in identifying and defending these claims by being extra vigilant and speaking to us:

0800 0325033

Email: ClaimsValidationCommercialClaims@lv.com

Categories: Commercial Lines, Personal Lines

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