Insurance Fraud:
IT COULD REALLY COST YOU
Times are tough right now
Everyone's looking to make their money go further. But lying on an insurance application form or making a false claim – is insurance fraud. And it could cost you.
But my insurer won't know I've lied, right?
WRONG!
Insurance investigators have seen it all, from taking out home insurance cover after the damage has occurred, lying about how belongings were lost as you didn't have cover whilst at a festival or putting down a different person as the main driver of your car to bring down your premiums (known as Fronting). It is not worth the risk.
Getting caught up in insurance fraud can have serious consequences
For you
You could be added to the Insurance Fraud Register (IFR) for five years. You could be denied access to insurance services and policies will cost you more in future.
Your policy will be voided, and any legitimate part of the claim will be dismissed if you have exaggerated damage or lied on your application.
You could struggle to insure your vehicle, and if driven without insurance it can be seized by the police.
You could struggle to get a mortgage without having access to buildings insurance lenders insist on.
Without contents insurance for your home, you will not be able to claim for damage, theft or lost items.
You could face criminal prosecution.
For your future
You could lose your job or struggle to find work.
You may be unable to take out liability insurance, which is required if you wanted to set up your own business.
A criminal record shows up in background checks stopping you getting a job in certain fields such as working with vulnerable adults or children, or with government agencies.
For your family
You'll need to own up to your family and friends.
You may be unable to get life and death insurance, which can leave loved ones in financial hardship.
If you live with others, that could affect them too.
INSURANCE FRAUD: IT COULD REALLY COST YOU
Did you know?
- Insurance fraud costs the industry £2 billion each year and makes insurance policies more expensive for everyone.
- The Insurance Fraud Bureau (IFB) and our insurance company partners, take it very seriously.
- The IFB works with insurers to share information about fraudulent and suspicious applications and claims.
- There is a massive industry wide database called the Insurance Fraud Register (IFR).
- Details of everyone who has been confirmed of committing insurance fraud are kept and shared on the IFR.
- The IFR is used by insurance companies to check people when they apply for insurance.
- Claims are analysed so insurance companies can see who's making false claims.
- There are investigators working on thousands of cases all over the country right now!
Whatever the financial struggles you're going through insurance fraud isn't the answer.
There is help available during this cost-of-living crisis whether you're young or old.
Please reach out to the following organisations who are there to support you without judgement of your personal circumstances:
Citizens Advice - Get help with the cost of living
Gov.uk - Help for households campaign
Shelter - Emergency grants loans and money help
Red Cross - Get help with money problems
Age UK - Help with the cost of living
NHS - Advice for life situations and events - how to cope with financial worries
Think you've been the victim of insurance fraud?
You're not alone and help is available
Watch out for these common insurance scams
Protect yourself and your family by knowing the signs.
Crash for cash
This dangerous scam involves reckless criminal groups deliberately crashing into innocent motorists to make fake insurance claims.
Ghost broking
Seen an insurance deal that's too good to be true? This common scam involves fraudsters selling fake or illegally obtained insurance policies that leave their victims out of pocket and uninsured.
Clip for cash
This new scam involves fraudsters accusing innocent drivers of clipping their wing mirror before demanding cash upfront.
Data theft
From impersonating an insurer to fake job ads, fraudsters are always coming up with new ways to steal your personal data.
Paid Ad Scams
When fraudsters impersonate your insurer in online search results to steal information and hijack your genuine insurance claim.
What to do if you have been the victim of insurance fraud?
Your first call should be to the police and your insurer (if applicable) to alert them of the situation.
Next, report it to CheatLine.
Depending on the type of fraud you've fallen victim to, you may face the same consequences experienced by the real fraudsters.
If you bought insurance from a Ghost Broker – your insurance isn't valid. You could face the same charges as someone driving without insurance and risk being fined, points on your license, and having your car seized.
Encouraged to lie on a claim by a Claims Farmer? You may be denied insurance in the future and be added to the Insurance Fraud Register (IFR). This can prevent you being able to drive or get a mortgage. See our tips to avoid getting conned!
Have you got information about insurance fraud?
Depending on the information you have and what you've witnessed, we recommend getting in touch with the police in the first instance, especially if someone's safety is at risk.
We appreciate that this may not always be possible and there are times where you would like to remain anonymous. All submissions to CheatLine are completely confidential and it's quick and easy to complete.
What do we do with this information?
As the counter fraud intelligence hub for the insurance industry, we share the information you provide securely with insurers, the police and industry watchdogs, helping to protect the honest majority.
Did you know?
We all pay the price of insurance fraud. Insurance scams have serious consequences for victims and make insurance more expensive for everyone.
Whether it's lying to an insurer, selling fake policies, people being tricked into thinking they're entitled to compensation or criminals that deliberately crash into other drivers to make a claim, insurance fraud affects you more than you might think.