Reported cases of opportunistic fraud in Britain jumped by 61% from March 2022 to April 2023, according to the City of London Police’s Insurance Fraud Enforcement Department (IFED).
The IFED believes the steep increase is due to the cost of living crisis hitting many people across the country, causing increased numbers of otherwise law-abiding citizens to turn to insurance fraud as a way to ease financial hardships.
The most common type of this fraud was motor insurance accounting for 51% of the cases the unit received. Property insurance fraud was also significant, and made up 29% of cases received.
The IFED urged the public to know the risks associated with committing insurance fraud.
Opportunistic insurance fraud occurs when somebody spots a chance in their everyday life to exaggerate a claim for financial gain, or provide false information when applying for insurance.
Examples include faking an injury following a genuine road traffic accident or claiming twice on insurance after losing an item of jewellery.
The unit has launched a national awareness campaign to highlight examples of opportunistic fraud and the devastating consequences that committing it can have.
Detective chief Inspector Tom Hill, from the Insurance Fraud Enforcement Department (IFED) at City of London Police, said: “We understand that the rising cost of living has presented challenges for many people across the country – but turning to crime to make some quick cash is never the answer.
“Committing insurance fraud can leave you with a criminal record, and have long and serious consequences such as criminal prosecution and a prison sentence.
“At the very least, it can make it harder to get insurance in the future. Offenders can be placed on the Insurance Fraud Register, run by the Insurance Fraud Bureau, which can prevent them from accessing essential insurance services for several years,” he added.
£200,000 of claims investigated
The IFED also publicised some recent fraud cases and noted that, during a period of enforcement earlier this year, officers from IFED investigated 18 opportunistic claims, worth a total estimated value of £216,875, resulting in multiple search warrants, charges and arrests across the country.
Officers searched addresses in Newbury, Peterborough and Portsmouth and arrested two people, with the Crown Prosecution Service authorising charges against four other people suspected to have made fraudulent claims.
Seven interviews were conducted in connection to the investigations and several ‘cease and desist’ notices were delivered across the country.
The IFED said fraudulent claimants caught out during this period included Collette Drysdale, 54, of Dunstable, who was charged with fraud by false representation after officers suspected that she submitted a personal injury claim that falsely stated she was in her car when her neighbour’s vehicle crashed into it. A date is due to be set for Drysdale’s first appearance at court.
In another case, a 43-year-old man from south London was ordered to pay a £500 fine and a further £500 in court costs at Inner London Crown Court on 5 May , after submitting claims for the same television on two home insurance policies.
He pleaded guilty to two charges of fraud by false representation at the same court on 24 March 2023.
And in a third case publicised by the IFED, a 52-year-old man, from Hayling Island, Hampshire, who stayed in temporary accommodation following water damage to his home, was cautioned by IFED officers after he edited invoices from a hotel to inflate the costs shown, and then sent them to his insurance provider.
Jon Radford, head of intelligence, investigations and data services at the Insurance Fraud Bureau (IFB), said: “We know times are hard, but if people think turning to insurance fraud can help their financial woes go away, they can think again.
“When someone is added to our Insurance Fraud Register, they can have their access to essential insurance services denied for five years and this has devastating consequences – from being unable to insure and drive a car, to being refused buildings insurance and ultimately access to a mortgage,” he said.
Mark Allen, assistant director, head of fraud and financial crime, at the Association of British Insurers, said: “Insurers appreciate the financial pressures that many households are facing with higher cost of living bills and will pay legitimate claims as quickly as possible.
“But making a fraudulent insurance claim to raise some cash will lead to further financial hardship, with the only thing that you could gain a criminal record. You will find it harder and more expensive to get future insurance and other financial products.
“If you are worried about being able to afford your insurances, then talk to your insurer to see what support and help they may be able to provide,” Allen said.