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Analysis

Reforms Slam Brakes On Crash-For-Cash Insurance Fraud

Law360, London (February 21, 2019, 9:09 PM GMT) -- Scammers are shifting away from lucrative "crash-for-cash" insurance fraud following a series of successful convictions, closer ties between police and insurers and the emerging threat of jail sentences for contempt of court, police and attorneys say.

Criminal gangs and opportunists have long staged traffic accidents or exaggerate the damage, then claim against major insurance companies, calculating that the risk of being caught out telling lies in court was small. The scams cost the U.K. £340 million ($440 million) annually, according to the Insurance Fraud Bureau, generating plenty of work for lawyers on both sides.

But the tide is shifting. Attorneys are...

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