A growing number of drivers across the UK are being caught up in a new form of "crash for cash" scam involving mopeds, prompting warnings from the Insurance Fraud Bureau (IFB) and motor insurers.
The fraudsters stage minor collisions before pressuring drivers to hand over personal documents such as driving licences or insurance papers. Those details are then used to create fake motor insurance policies or to file bogus claims in the victim’s name.
The IFB said it has identified more than 1,100 fraudulent motor policies linked to this scam between summer 2024 and March 2025, with many more likely going unreported. According to a report from The Guardian, incidents have been concentrated in London and parts of the Home Counties, including Chelmsford, Hertford, Rickmansworth and St Albans.
John Davies, Intelligence and Investigations manager at the IFB, said that as nights draw in and driving conditions deteriorate, criminals are exploiting darker roads and driver distraction.
In most cases, moped riders deliberately collide with cars emerging from junctions or turning slowly. The impact is often minor, but the rider will claim to be injured, throw their moped to the ground and insist on taking photos of the driver’s personal details. Some have accomplices on standby to act as false witnesses.
Victims later discover their stolen information has been used to open dozens of motor policies or to file fraudulent injury and repair claims. The IFB reported one driver had more than 40 fake insurance policies taken out in their name, while others have had existing policies hijacked to process false claims.
The rise in this form of identity-based insurance fraud poses new challenges for insurers. Verifying legitimate claims and detecting stolen identities adds complexity to the claims process and increases administrative costs across the motor market.
Fraud specialists said insurers may need to tighten policy verification systems and strengthen data-sharing with the IFB to prevent criminals from exploiting stolen personal information.
Drivers are legally required to exchange only names, addresses and vehicle registration numbers after an accident. Insurers and police advise against sharing copies of licences or policy documents at the roadside.
According to the report, those who suspect they’ve been targeted should contact their insurer, report the incident to police, and notify the IFB through its confidential Cheatline. Victims can also register with Cifas Protective Registration to flag potential identity misuse with financial institutions.
Finally, the IFB warned that with winter approaching, vigilance from both motorists and insurers will be essential to curb the latest evolution of crash-for-cash fraud.
