9 February 2012
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4 March 2009
Motor fraud study highlights new problem zones throughout UK
A new study of motor insurance fraud has revealed that the problem is spreading from well known hotspots into neighbouring towns previously less plagued by suspect claims.
The 2009 Motor Fraud Index - which is published by law firm Keoghs and reveals where the UK’s most suspicious insurance claims are made - has revealed that nine towns closest to the UK’s top ten motor fraud hotspots now form new “problem zones”, where the number of suspect motor fraud claims has increased steadily over the last year.
Topping the new zones is Huddersfield, followed by Sheffield, Chester, south east London, Stoke-on-Trent, Leicester, Stockport, Wolverhampton and Romford.
Experts at Keoghs - which is the UK’s largest handler of suspect fraudulent claims, and runs one of the country’s most experienced counter-fraud ring teams – are warning that this “leaching effect” is taking place because insurers and their legal teams are now successfully cracking down on fraudsters in the known hotspots.
Keoghs’ Motor Fraud Index has confirmed this year again that Bradford is generating the highest number of suspicious claims in the UK, followed by Birmingham, Blackburn, Liverpool, Oldham, Manchester, Bolton, Southall, Huddersfield and south east London.
Major motorway junctions near heavily built up areas are also still a popular target - demonstrated by the number of claims in the Birmingham area, which remains the country’s second worst region for suspicious claims.
James Heath, head of counter fraud strategy at Keoghs, said: “Our Motor Fraud Index clearly shows that the regions with the highest levels of suspicious claims activity in the past are still plagued by the problem - with only one of the top ten worst affected towns changing in the past year.
“But while there is clearly still a hard core of motor fraud hot spots that continue to suffer from a high level of fraud, our latest study demonstrates that fraudsters are now seeking softer targets in neighbouring towns.
“This development is not unexpected given the intense efforts by insurers and their legal teams over the last year - but nevertheless it is causing concern.
“The enormous cost of fraud to the insurance industry is well known, and organised fraud now poses more of a problem than ever before.
“The industry is fighting back with increasingly advanced fraud detection techniques - last year alone, Keoghs helped some of the UK’s leading insurers to avoid paying out over £40m on suspected fraudulent claims.
“To combat this latest ‘leaching’ issue, we will be using the skills of our expert fraud team and the latest technology to help insurers to expose the fraudsters - and make sure they are not given an easy ride.”
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The 2009 Motor Fraud Index - which is published by law firm Keoghs and reveals where the UK’s most suspicious insurance claims are made - has revealed that nine towns closest to the UK’s top ten motor fraud hotspots now form new “problem zones”, where the number of suspect motor fraud claims has increased steadily over the last year.
Topping the new zones is Huddersfield, followed by Sheffield, Chester, south east London, Stoke-on-Trent, Leicester, Stockport, Wolverhampton and Romford.
Experts at Keoghs - which is the UK’s largest handler of suspect fraudulent claims, and runs one of the country’s most experienced counter-fraud ring teams – are warning that this “leaching effect” is taking place because insurers and their legal teams are now successfully cracking down on fraudsters in the known hotspots.
Keoghs’ Motor Fraud Index has confirmed this year again that Bradford is generating the highest number of suspicious claims in the UK, followed by Birmingham, Blackburn, Liverpool, Oldham, Manchester, Bolton, Southall, Huddersfield and south east London.
Major motorway junctions near heavily built up areas are also still a popular target - demonstrated by the number of claims in the Birmingham area, which remains the country’s second worst region for suspicious claims.
James Heath, head of counter fraud strategy at Keoghs, said: “Our Motor Fraud Index clearly shows that the regions with the highest levels of suspicious claims activity in the past are still plagued by the problem - with only one of the top ten worst affected towns changing in the past year.
“But while there is clearly still a hard core of motor fraud hot spots that continue to suffer from a high level of fraud, our latest study demonstrates that fraudsters are now seeking softer targets in neighbouring towns.
“This development is not unexpected given the intense efforts by insurers and their legal teams over the last year - but nevertheless it is causing concern.
“The enormous cost of fraud to the insurance industry is well known, and organised fraud now poses more of a problem than ever before.
“The industry is fighting back with increasingly advanced fraud detection techniques - last year alone, Keoghs helped some of the UK’s leading insurers to avoid paying out over £40m on suspected fraudulent claims.
“To combat this latest ‘leaching’ issue, we will be using the skills of our expert fraud team and the latest technology to help insurers to expose the fraudsters - and make sure they are not given an easy ride.”
