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Crash and Buy

June 6, 2015 by  
Filed under Blog

Staged or fake car accidents account for a huge portion of the insurance fraud scams in the U.S. We have investigated many different types of fraudulent insurance claims involving fake car accidents or fake injuries that resulted in the supposed accident. We have seen a lot of different types of staged car accidents in our time investigative insurance fraud. In our opinion the worst type of car accident insurance fraud is when the accident is actually real, but the claim isn’t.

What is a Crash and Buy Scam?

You may be wondering that how can a claim be false when the car accident actually took place? The answer to the question can be determined from the following example: Let’s say that a car is driving down the road and gets into an accident. When the passengers find out that they don’t have car or accident insurance, instead of paying for the damage and injuries themselves, they buy an insurance policy and make a claim that the accident happened after the policy kicked in. This is what investigators like to call a crash and buy scam.

How Fraudsters do it?

Pulling this type of scam off takes some planning and they are more common than you may think. When someone gets into an accident, their first instinct should be to report the said accident to authorities. But crash and buy scammers refrain from doing that. If there are other parties involved in the accident, then the scammers will convince them to leave it alone. Some may even pay the other driver off for their silence.

When an accident goes unreported, in the eyes of everyone else, including the insurance companies, it did not happen. The scammer then goes out and buys the right insurance policy. They either wait a while or make a claim of a car accident immediately. They report the accident, show off the damage to their car, which they haven’t gotten fixed just yet, as proof that the accident did happen.

What it Costs?

A defining factor of this scam is that the accident and all the facts pertaining to it are real; so the fraudsters just have to state the facts and change the time of the accident, to take advantage of the insurance companies. As a result, the insurance companies raise their premiums and innocent people have to pay the price.

The information above can help you understand how crash and buy scams work. If you are dealing with such fraudulent claims, then contact us (800-960-6748) and we can help you uncover the truth.

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