Opportunistic scams have rocketed by more than 80 per cent as law-abiding citizens turn to crime to overcome the cost-of living crisis, police have warned.
Fraudsters faking accidents or exaggerating damage to con money out of insurance companies have shot up by more than three-quarters over the last year, fraud investigators said.
Specialist detectives have probed 18 such claims worth a total of around £216,875 in the last two months alone.
The City of London Police's Insurance Fraud Enforcement Department (IFED) believes increased cost of living pressures contributed to a rise in fraudulent claims from otherwise law-abiding citizens as a means to "ease financial hardships".
Last year the number of referrals for these opportunistic scams received by the unit increased by 82 per cent from 2021.
Across the UK in February and March this year officers raided homes in Berkshire, Peterborough and Portsmouth and arrested two people, with charges brought against four other suspects alleged to have made fraudulent claims.
Seven interviews were carried out and several 'cease and desist’ notices delivered across the country, City of London Police said.
Opportunistic insurance fraud happens when somebody knowingly submits a false claim or takes advantage of an otherwise legitimate situation to exaggerate a claim for monetary gain, the IFED said.
Unlike other forms of fraud, such as so-called ‘crash for cash’ scams, opportunistic claims are often not premeditated and do not involve a high level of planning, police added.
A recent investigation by IFED saw a man deliberately deflate a boat and claim for accidental damage, worth £6,629.
Jon Morgan, 41, claimed the boat deflated on the River Hamble after he steered left to avoid colliding with an oncoming yacht and crashed into another vessel on January 3, 2021.
But an assessor from insurer Zurich inspected the boat two months later and concluded the damage was not consistent with a collision.
CCTV footage from the lock-up where Morgan stored the boat, showed him bringing it into the storage facility, visibly intact, the day before the assessor arrived and then deliberately damaged it.
During his police interview, Morgan, of Cranmore, Netley Abbey, Southampton, claimed the footage showed him removing temporary repair tape from the boat to help the assessor view the damage on the following day.
But at Winchester Magistrates Court, Morgan pleaded guilty to fraud by false representation and was handed a 12-month community order and ordered to do 240 hours of unpaid work.
Detective Chief Inspector Tom Hill, from the Insurance Fraud Enforcement Department (IFED) at the City of London Police, said today (Wed): "We understand that the rising cost of living has presented challenges for many people across the country - but turning to crime is never the answer.
"Sadly, over the past year, we have seen an uptick in opportunistic claims, from people exploiting legitimate road traffic accidents to submitting bogus claims for high-value jewellery.
"Fraudulent claims drive up the cost of insurance for everyone, meaning that honest policyholders end up paying the price.
"As well as this, making a false claim could land you with a criminal record.
"It may seem like a chance worth taking, but the consequences could have a lasting impact on your life."
Anyone suspecting someone of committing insurance fraud, can report it to the free, confidential CheatLine run by the Insurance Fraud Bureau at insurancefraudbureau.org/cheatline, or call 0800 422 0421.
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