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Several Scottish locations have been identified among the UK's leading motor insurance fraud hotspots following new analysis by the Insurance Fraud Bureau (IFB). The study examined 3.3 million motor insurance claims and comes as fraudulent vehicle insurance claims rose by 12% over the past year.
According to the Association of British Insurers (ABI), motor insurance fraud now costs the UK economy more than £1 billion annually. In Scotland, Crieff (PH5) topped the list of fraud hotspots, followed by Glasgow (G23) and the Isle of Skye (IV55), while other Scottish locations featuring in the top 10 included Boat of Garten, Ullapool and several Glasgow postcodes.
Across the rest of the UK, Barking & Dagenham (RM9) ranked highest in England, while Cemaes Bay (LL67) led the Welsh rankings and Crumlin (BT29) topped the list in Northern Ireland. The IFB says fraudsters are increasingly using a range of tactics to generate false insurance claims, and among the most common are so-called "crash for cash" scams, where criminals deliberately cause collisions before attempting to hold another motorist responsible.
Identity theft is also becoming a growing concern. Criminals are using personal information obtained through fake job adverts, social media and other online sources to take out insurance policies or submit fraudulent claims in someone else's name.
Jon Radford, head of intelligence, investigations and data services at the IFB, says insurance fraudsters are relentless, and their tactics are evolving fast. “By revealing the UK’s top motor insurance fraud hotspots, our aim is to help protect those who are at greater risk. Insurance scams can put people in danger and drive up costs for honest consumers, at a time when many are already under financial pressure. We’re working closely with the police and insurers to stop this activity, and we urge the public to stay alert and report suspected insurance fraud to our confidential Cheat Line.”
The IFB identified several common scam methods. These include "roundabout traps", where a driver deliberately moves into the wrong lane to create a collision, and "sideroad setups", where motorists are encouraged to pull out before being intentionally struck. Moped-related scams, involving riders entering oncoming traffic and then blaming another road user, have also been reported.
Motorists should remain alert to warning signs such as sudden braking, unexpected lane changes, damaged brake lights, pre-existing vehicle damage and exaggerated injury claims following an accident. To reduce the risk of becoming a victim, drivers are encouraged to fit dashcams, maintain safe distances from other vehicles and gather as much evidence as possible following any collision, including photographs, video footage and the other driver's insurance details.
The ABI says insurers are continuing to work closely with the IFB and law enforcement agencies to identify fraud and protect honest motorists from rising costs.
8 Westerton Road, East Mains Industrial Estate, Broxburn
West Lothian EH52 5AU
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