‘Ghost brokers’ helping insurance fraud gangs
CRIMINAL gangs are using ‘ghost’ insurance brokers to make fake claims for accidents that have been staged or – in some cases – have never even taken place.
The sophisticated operations add another layer of deception to the activities of fraudsters who make illegal claims that push up the cost of cover for honest motorists.
In some cases they will use a perfectly legal document, ie proof of a full no-claims bonus belonging to a safe driver, put it in the name of a motorist with a bad accident record, and pass it on to the unsuspecting insurance firm.
As this document comes from what appears to be a legitimate broker, it will go on file with the new insurance firm and if the motorist stages a crash, this will be on record as proof that they have not made any previous claims.
The fraud can only be uncovered if the insurer becomes suspicious and a thorough investigation is carried out.
However, gardaí are now clamping down on the activity. A source told the Irish Mail on Sunday how in one case a ‘broker’ colluded with 26 others to claim on ‘accidents’ that it is believed never happened.
In most cases the fraud is done simply to get cheaper cover for high-risk motorists – and they don’t make any claims.
But Rob Smyth, the head of fraud at Aviva, told the MoS he is aware of at least two gangs that are securing cheap insurance and colluding with others to stage accidents. He said: ‘Ultimately, the aim is to stage an accident by colluding with other criminals and then submit a claim for non-existent injuries.’
In some cases the ‘broker’ gives fraudulent documents, such as no claims discounts and driving licences, to criminal gangs in order for them to secure cheap insurance. Once the policy is in place, accidents are staged or caused by actions such as slamming on the brakes, making the person who rear ends you liable.
In such cases there is less of a likelihood of an investigation into the fake documents.
A complex investigation into the activities of these ghost brokers, conducted by Aviva and the Garda Traffic Unit, has identified an Eastern European man who is arranging motor insurance for other Eastern European people who live in Ireland.
The investigation also identified 158 suspect policies linked to I38 suspects, six suspected fraudulent claims, multiple variations of same names, dates of birth and addresses, and four email addresses linked to 37 policies, 30 different policy holders and fake no-claims bonus certificates.
Mr Smyth told the MoS: ‘We will not be settling these claims for so called “small walk away money”. We will present the best evidence possible to the courts.’
‘We will not be settling for small money’