Fraud gang targets Zurich with planned accidents
An Eastern European fraud gang is targeting Zurich, investigations have uncovered.
According to the Irish Examiner, an an “organised and sophisticated Eastern European fraud ring” has been plotting staged accidents.
Zurich and the Motor Insurers’ Bureau of Ireland (MIBI) together uncovered the plot.
DAC Beachcroft’s David Culleton told the Circuit Civil Court the fraud ring “has generated an exposure to a potential 25 personal injuries claims”.
The Examiner says the fraud could amount to €2 million in compensation.
Staged accidents typically involved drivers who had just previously taken out insurance on old vehicles using false identities or information, Culleton said.
Drivers and their cars would then become untraceable after a report is filed with the insurer, he said.
Last month, Insurance Times reported that ghost broking criminals are now using social media to perperate fraud on insurers.