By Detective Chief Inspector Nik Jethwa, Head of the City of London Police’s Insurance Fraud Enforcement Department (IFED).
As the newly appointed head of the City of London Police’s Insurance Fraud Enforcement Department (IFED), I am eager to continue our strong partnership with the ABI and its members. By working together, we will advance our strategic priorities of enforcement, disruption, protection and prevention.
IFED tackles all forms of insurance fraud, including motor, commercial and public liability. We tackle threats such as illegal insurance intermediaries, also known as ghost brokers. We are committed to bringing organised criminal groups and opportunistic fraudsters to justice. Achieving these goals relies on strong collaboration and partnership with the insurance industry.
IFED serves as a key link into law enforcement for the industry. By doing so, we play an important role in the delivery of the Government’s Insurance Fraud Charter, which will help identify and address emerging threats, enhance criminal justice outcomes and improve support for victims.
Our swift intervention when responding to reports of ghost broking has prevented further victimisation to the industry and public. IFED utilises its full suite of tools to tackle ghost brokers by relentlessly pursuing prosecutions, working with social media platforms to take down profiles used to target victims, and issuing cease and desist notices to tackle first-time offenders. The reoffending rate for ghost brokers who are given cease and desist notices currently sits at two per cent.
Last month, a man who made 25 fraudulent claims was sentenced to two years imprisonment, suspended for 18 months, and handed a Serious Crime Prevention Order (SCPO). The SCPO means that the offender will be subject to a number of restrictions to prevent him from committing further offences. The restrictions include limitations on the number of phones and computers he can own, and he must also notify the City of London Police each time he opens a bank account or takes out an insurance policy. Breach of a SCPO is a criminal offence punishable by up to five years’ imprisonment and an unlimited fine.
In another recent case, an organised crime group that pocketed over £320,000 through a crash for cash scheme pleaded guilty to the charges brought against them. The two leading members of the group submitted claims on insurance and to a vehicle repair finance service, for road traffic collisions that were deliberately induced or had never taken place. The remaining eight members of the group either caused the collisions or knowingly provided their personal details to facilitate the claims. All ten members of the group are awaiting sentencing.
Insurance fraud is often wrongly perceived as a victimless crime. We know very well that crash for cash fraud, for example, puts motorists at risk, has legal implications and pushes insurance premiums up for the public. In addition to pursuing offenders, IFED has recently worked with the Insurance Fraud Bureau to raise awareness of fraud such as crash for cash and ghost broking, and how the public can protect themselves against them. We also educate our industry partners on emerging trends and tactics used by fraudsters, so that they can strengthen their counter-fraud strategies.
Whether it’s pursuing offenders or raising public awareness of insurance fraud, IFED’s success relies on close collaboration with industry. With the Government's renewed focus on combatting fraud, it is an exciting time to be at the forefront of this effort.
I look forward to sharing my perspective at the ABI fraud conference on 2 April, learning from partners and working together to combat insurance fraud.