Staged crash

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A staged crash, or crash for cash is when criminals maneuver unsuspecting motorists into crashes in order to make false insurance claims. The cars generally suffer little damage in relation to the large demand that is then fraudulently submitted.

Contents

According to the Coalition Against Insurance Fraud, staged car crashes are a growing criminal problem.[ citation needed ][ when? ]

History

In the 1990s, poor Hispanic immigrants were recruited to stage a "Swoop and Squat" scheme and drive the swoop cars: a high-risk job that nobody wanted, but for which the immigrants could be paid only $100. One such driver, Jose Luis Lopez Perez, died after a swoop and squat crash, [1] [2] leading to an investigation which revealed the extent of this fraud.

In 2011, a group of seven people in North and South Carolina were arrested for allegedly stealing over $100,000 through staged crash schemes. [3] [4]

Varieties of the scam

Legislation

In recent years, authorities noted a significant increase in the number of staged accidents in Florida. [17] The state ranks number one in staged car accidents across the US according to the National Insurance Crime Bureau [18] [19] and is the most expensive state for auto insurance. Being a no-fault insurance state that requires a certain amount of personal injury protection for auto insurance, [20] insurance companies are required to pay up to $10,000 per person for medical treatment, regardless of who is at fault. [21] Florida has since passed specific legislation (Florida Statutes 817.234) against faking a car crash in order to receive insurance money. [22]

Other states have passed or are eyeing diverse legislation targeting efforts by gangs to bring in real and fake crash passengers to lodge phone crash-injury claims. At least 15 states and the District of Columbia have passed laws targeting runners of crash gangs or soliciting of real auto crash passengers. [23]

See also

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References

  1. Craddock, Ashley; Lawrence, Mordecai. "Swoop and Squats". Mother Jones. Retrieved 2023-02-05.
  2. O'neill, Ann W. (1996-05-14). "Lawyer Faces Murder Trial in Staging of Car Accident". Los Angeles Times. Retrieved 2023-02-05.
  3. North Carolina Department of Insurance, “Department of Insurance Investigators Break up Alleged Staged Accident Ring.”, North Carolina Department of Insurance, September 8, 2011
  4. "Insurance fraud escalates during tough times". Triangle Business Journal. Retrieved 2023-02-05.
  5. "Swoop & squat: Beware of these insurance fraudsters". PropertyCasualty360. Retrieved 2023-02-05.
  6. Craddock, Ashley; Lawrence, Mordecai. "Swoop and Squats". Mother Jones. Retrieved 2023-02-05.
  7. "'Swoop and Squat': Staged car accidents, insurance fraud rise in L.A." Los Angeles Times. 2014-05-23. Retrieved 2023-02-05.
  8. Posey, Mariah. "6 Types of Car Insurance Fraud". Bankrate. Retrieved 2023-02-05.
  9. "15 Common Car Insurance Scams You Need to Look Out for". FinanceBuzz. 2022-09-09. Retrieved 2023-02-05.
  10. "Car Insurance Scams – How to Recognize if You're Involved in One | Freeway Insurance". Knowledge Center. 2022-08-24. Retrieved 2023-02-05.
  11. Posey, Mariah. "6 Types of Car Insurance Fraud". Bankrate. Retrieved 2023-02-05.
  12. "Staged Auto Accident Fraud | National Insurance Crime Bureau". www.nicb.org. Retrieved 2023-02-05.
  13. "How to avoid auto insurance fraud". www.cooperators.ca. Retrieved 2023-02-05.
  14. Parra, Esteban. "Intentional motor vehicle crash turned into carjacking in Bear, police say". The News Journal. Retrieved 2023-02-05.
  15. Edmunds (2009-05-13). "Auto Insurance Fraud: What It Costs You". Edmunds. Retrieved 2023-02-05.
  16. Charlotte Regis, “Crash For Cash Scams”, “Compare Van Insurance”, February 20, 2018
  17. "Case highlights staged car accidents, PIP insurance fraud in Florida". Orlando Sentinel. Retrieved 2023-02-05.
  18. Shepard • •, Willard. "Faked Fender Benders Costing You Cash". NBC 6 South Florida. Retrieved 2023-02-05.
  19. "WFTV investigates staged car accidents in central Fla". WFTV. 2013-12-24. Retrieved 2023-02-05.
  20. "Florida Car Accident Statistics". Esposito Law Firm. Retrieved 2023-02-05.
  21. "Personal Injury Protection (PIP): What Is It? (2023)". MarketWatch. Retrieved 2023-02-05.
  22. "Statutes & Constitution :View Statutes : Online Sunshine". www.leg.state.fl.us. Retrieved 2023-02-05.
  23. Goldblatt, Howard. "Laws solicit jail for soliciting crash fraud", "Journal of Insurance Fraud in America", Spring 2012, pg.23