Fake insurance claims are a serious problem in Ireland and bodyshops will often hear anecdotal evidence of crash scams that their customers have been involved in. These appear to be relatively isolated incidents, but the authorities here should perhaps be wary of what can happen when scammers get seriously organised in a localised area.  

Police in Co. Durham in North East England; have broken up what they believe to be one of the most active and lucrative fake accident claims scamming operations ever seen in the UK. Four men from Derwentside and Darlington, were apprehended as part of the Operation Sledgehammer initiative to tackle organised crime.

Superintendent Rob Coulson of Durham Constabulary said, “We believe this to be organised crime on a large scale, involving more than 300 accidents, averaging around £14,000 per claim. In total, we believe these crimes have resulted in losses of well over £3m to those insurance companies.”

The scams have been cited as a key reason for rocketing car insurance premiums in the Derwentside area, which have climbed well in excess of the national average. The breaking up of the ring will come as welcome news to local drivers, some of whom were struggling to find any companies prepared to insure them.