The City of London Police’s Insurance Fraud Enforcement Department (IFED) has investigated 18 claims of opportunistic insurance fraud between February and March, as soaring inflation is triggering a rise in fraud.
IFED told Health & Protection these claims included two related to private medical insurance (PMI), with an estimated total value of £38,302.
During February and March, IFED officers executed warrants in Berkshire, 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.
IFED explained opportunistic insurance fraud occurs when somebody knowingly submits a false claim or takes advantage of an otherwise legitimate situation to exaggerate a claim for monetary gain.
Unlike other forms of fraud investigated by IFED, such as crash for cash scams, opportunistic claims are often not pre-meditated and do not involve a high level of planning.
The unit partly attributes rising cost of living pressures to an increase in fraudulent claims from otherwise law-abiding citizens as a means to ease financial hardships.
In 2022, the number of referrals for opportunistic claims received by the unit increased by 82% from the previous year.
Detective chief inspector Tom Hill of IFED at the 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 is never the answer.
“Sadly, over the past year, we have seen an uptick in opportunistic claims, from people exploiting legitimate road traffic accidents to submitting bogus claims for high-value jewellery.
“Fraudulent claims drive up the cost of insurance for everyone, meaning that honest policyholders end up paying the price. As well as this, making a false claim could land you with a criminal record.
“It may seem like a chance worth taking, but the consequences could have a lasting impact on your life.”
Mark Allen, head of fraud and financial crime at the Association of British Insurers (ABI), added: “Insurers recognise that many households are still battling the cost of living crisis and strive to pay legitimate claims as soon as possible.
“But honest customers rightly expect insurers to clamp down on insurance fraud. If you suspect someone of committing insurance fraud, you can report it to the free, confidential CheatLine run by the Insurance Fraud Bureau at insurancefraudbureau.org/cheatline, or by calling 0800 422 0421.”