Have you been a victim of 'flash for cash'?
Con men have a new tactic to defraud insurance companies and innocent drivers - but it's not what you think.
Picture the scene: You’re pulling out of a petrol station or side road and a driver on the main road slows down and flashes his or her lights, indicating it’s safe to pull out in front of them.
Off you go – but instead of letting you join the stream of traffic the other driver speeds up and crashes into the side or rear of your car. Because you’ve pulled out into the main road the accident is technically your fault, whether the other driver appeared to be letting you in or not.
Bad luck – you’ve been flashed for cash.
How the scam works
Flash for cash is a variation on fraudsters’ favourite “crash for cash”. This type of scam centres on making exaggerated and fraudulent car insurance claims against an insurer after a staged or deliberate road traffic accident.
In most cases a member of the gang will slam on his brakes and cause the innocent driver behind them to crash into the back of his car, an incident that is technically the fault of the driver behind.
After swapping insurance details the innocent driver’s insurance company will be on the end of a massive claim from the other party. This will normally include the price of a recovery vehicle, car hire, and whiplash injuries to the car’s passengers (normally more passengers than there actually was in the car).
Flash for cash is even craftier, as blame for the accident will come down to the innocent driver's word against the criminal's regarding whether or not they flashed their lights to let them out.
Big business
Crashing for cash is big business, estimated to cost the insurance industry more than £1.5bn a year. In many cases the gangs are part of bigger criminal networks also involved in drugs and people smuggling.
For honest drivers, the cost of insurance fraud is said to add an extra £50 to £100 onto everyone’s premium.
The Asset Protection Unit, a company which helps the police and the insurance industry investigate fraud, has warned drivers about flash for cash. It said it’s seen an increased number of cases since the start of the year.
Claims or accident management companies are key players in crash or flash for cash. This sort of no-win-no-fee company exists to take care of the needs of innocent collision victims – everything from pursuing personal injury claims to arranging courtesy car hire while the damaged vehicle is being repaired.
But while some claims management firms are genuine, many are set up by fraudsters to defraud insurance companies. The Insurance Fraud Bureau found that a high number of CMCs can be found in crash for cash hotspots.
How to avoid becoming a victim
The simple advice to avoid being a flash for cash victim might be to ignore anyone who flashes their lights to let you out of a side turning – but that could result in a lot of sitting around at junctions waiting to go.
Fortunately the APU has identified certain drivers more likely to be targeted than others. These include elderly motorists or women with young children in the car who might not put up too much resistance at the scene. Drivers with new-ish cars, almost certain to be insured, are also a typical target.
If you think you’ve been a victim of flash for cash, try and collect as much evidence as you can at the scene including details of any witnesses who may have seen the other driver flash their lights. Be especially suspicious if the other driver already has their insurance details written down ready to give you.
Alert both the police and your insurance company to your suspicions and keep an eye on your insurance claim – if the other party has wildly exaggerated the incident, damage or injuries sustained then you have reason to be suspicious.
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