Romance Fraud Alert: Scammers Turn Victims into Insurance Cheats
In a disturbing twist on traditional romance fraud, scammers are now manipulating victims into becoming unwitting participants in insurance scams, rather than directly targeting their finances. This emerging tactic involves fraudsters convincing individuals they meet on dating sites to stage car accidents or file bogus insurance claims, exploiting their identity for fraudulent payouts.
Under-Reported Cases and Shame Factors
The Insurance Fraud Bureau (IFB), a UK organization working on behalf of insurers, reports that while several cases have been detected over the past year, many incidents likely go unreported. Nicola Smith, intelligence and investigation manager at the IFB, explains that this under-reporting may stem from the shame associated with the scam, as well as its unique nature.
"The generic reason that it might be going under-reported is because of the shame around the situation," says Smith. "But also this tactic is different in that the target isn't being hugely financially impacted. They're not being asked for money. They're being asked to use their identity."
Real-World Example and Legal Consequences
Last year, a man named Nathan Atkins was sentenced to 20 months in prison at Bournemouth Crown Court for manipulating women he met on dating sites into participating in staged car crashes. These women then filed personal injury claims, which insurers paid out on, highlighting the severity of this fraud.
Although victims may not suffer immediate financial losses, they face significant risks, including being placed on the insurance fraud register. This can severely impact their ability to obtain future insurance policies and damage their credit scores.
"What you're being targeted for is your identity," emphasizes Smith. "And it's really important to know that if you're complicitly taking part in this, you are committing fraud along with them."
How the Scam Operates
Scammers typically identify victims they believe can be persuaded to participate in fraud, regardless of their financial status. "You don't have to have lots of money to be a target of this scam because all they need is your identity," notes Smith. "What they want from you is your agreement to take part in a scam."
Victims might be asked to falsely claim they witnessed an accident, were passengers in a vehicle during a crash, or sustained injuries from an incident. Often, fraudsters provide a script or detailed account for the victim to follow when dealing with insurers.
"It could be just being arranged to answer a phone call from an insurer where they were asked 'Were you a passenger in this car?'" says Smith. "But ultimately, to be directly involved in the scam, you would be being asked to lie to an insurer."
Prevention and Reporting Measures
If someone you meet on a dating app requests your involvement in illegal activities, it is crucial to report them immediately through the app. Additionally, you can take the following steps:
- Send screenshots and evidence to local police authorities.
- Use the Report Fraud service to file a complaint.
- Contact the Insurance Fraud Bureau's Cheatline, a confidential online tool for reporting fraud.
Scammers often create a sense of urgency to pressure victims into quick decisions. The IFB advises that if someone demands urgent help, offer to contact emergency services. If they refuse, be cautious and terminate the conversation.
This scam underscores the evolving nature of romance fraud, where identity exploitation replaces direct financial theft, posing new challenges for victims and authorities alike.
