Warning over new 'crash for cash' scam spreading across the UK

A new scam has appeared which can con drivers into handing over cash, thinking they've caused an accident and there are warnings that it's spreading across the UK.

This new type of “crash for cash scam” may particularly target younger drivers and the elderly.

Unlike “traditional” crash for cash scams where fraudsters cause a collision, the new twist involves scammers accusing drivers of clipping their wing mirror, before becoming threatening and demanding cash up front.

The warning is being issued by the Insurance Fraud Bureau (IFB) and City of London Police’s Insurance Fraud Enforcement Department (IFED), alongside several insurers.

The con was detected in London in 2021, but the IFB and IFED said they have since seen the “clip for cash” scam spread to other parts of the UK, including in the South West and Wales.

The IFB and IFED are investigating more than 40 incidents where innocent people appear to have been targeted, but due to a lack of public awareness, they are concerned that hundreds of cases could be going unreported.

How the 'clip for cash' scam works

The con often takes place on a residential road, according to the police. Here's how the scam plays out:

1. As the victim drives by slowly, the fraudster is parked in their car and throws an object such as a large rock at the side of the victim’s car to make an impact sound.
2. The victim is flashed by the fraudster’s car to get them to stop, before being accused of clipping a wing mirror, which had already been damaged.
3. The fraudster demands they hand over cash instantly or pressures them into visiting a cashpoint. The fraudster is reluctant to pursue any claim through the insurer. In some instances where the victim has not agreed to hand over money, the offender has become physically intimidating.

Some insurers said they are seeing younger drivers and the elderly being targeted.

Ursula Jallow, director at IFB, said: “Clip for cash is an increasing threat to drivers.

“These fraudsters trick innocent motorists into thinking they’ve caused genuine damage and then apply pressure tactics to get victims to hand over cash.

“As there is little awareness of this new fraud type, it means drivers are more susceptible to falling victim. We’re urging everyone to look out for the warning signs of these wing mirror stings and report it to Cheatline and Action Fraud.”

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