The criminals can make money by putting in false personal injury claims for whiplash, billing insurance firms for loss of earnings, or submitting fake bills for vehicle storage, recovery, repairs and replacement car hire.
“The problem is a growing problem,” he told the BBC.
“Financially it costs insurers £392m a year. That impacts on motorists as it’s an extra £50 to £100 on every person’s premium, so that’s a financial cost.
“[There are] emotional costs [as] if you’re involved in a crash you could well lose your confidence, and if your passengers are children they may well become wary of being passengers in cars, and of course you may get injured or killed.”
“Flash for cash” is a variation on the well-known car insurance scam known as “crash for cash”, in which criminals slam on their brakes for no reason, forcing the victim to smash into the back of their vehicle.
Similar insurance claims are then made by the fraudster, with the same risks posed to the innocent motorist they have targeted.
In February, four conmen were jailed at Reading Crown Court in Berkshire after the death of Baljinder Kaur Gill, a 34-year-old driver killed in a car crash that had been staged to claim a £20,000 insurance payout.
The incident was the first time a “cash for crash” scam was known to have caused the death of a driver.
Drivers warned of new "flash for cash" insurance scam
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