False ‘no claims’ incidents driving rise in fake insurance applications

Opportunistic drivers submitting false ‘no claims’ documents are causing more concern for insurance companies.

That was according to fraud prevention service Cifas, which said that there had been a rise in filings to the National Fraud Database (NFD) in 2023.

According to the firm’s data, which was published yesterday (18 June 2024), UK organisations recorded more incidents of fraudulent conduct in 2023 compared to the previous year, with false applications rising by 20%.

False ‘no claims’ incidents accounted for 9% of false application cases, of which there were more than 19,000 recorded to the NFD in 2023.

Stephen Dalton, director of intelligence for Cifas, said: ”The increasing sophistication of false documents poses a significant challenge for the insurance sector.

“The ease by which fake websites can be created, and the growth of generative AI and deepfake technology manipulation, means that some of these documents are highly convincing and may be capable of bypassing verification checks.

“While organised crime groups and ghost brokers continue to negatively impact the insurance industry, we’ve seen a rise in opportunistic fraud by individuals making false and exaggerated claims.

“Submitting a fraudulent car insurance claim can have serious consequences, including invalidating coverage and even result in prosecution.”