A MAJOR insurer has reported a 19% year-on-year increase in fraudulent claims, which it says is being driven by organised gangs and a "lack of effective deterrents".
Aviva said it uncovered more than £110 million worth of motor insurance fraud last year, marking a 19% increase from 2012, with the bulk of bogus claims being due to motor insurance fraud.
Motor injury fraud makes up 54% of Aviva's total detected claims fraud costs and the insurer said that much of this is down to organised gangs making "crash for cash claims", where criminals deliberately stage an accident, sometimes by slamming on their brakes so that a motorist drives into the back of them.
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Aviva said it is investigating 5,500 suspicious injury claims linked to "known" fraud rings, representing an increase of 20% since 2012.