Episode 7 Claimed and Shamed

Insurance fraud in the UK is reaching epidemic levels

and it's costing us billions of pounds every year.

Deliberate crashes...

Bogus personal injury claims...

Even fake deaths.

The fraudsters are risking more and more to make a quick killing...

and every year it's adding up to £50 to your insurance bill.

Insurers are fighting back -

armed with covert surveillance systems...

The equipment that we have to use has to be cutting edge,

it's as simple as that.

..sophisticated data analysis techniques...

This is connected to a bank account and a second mobile phone number.

..and a newly-formed, dedicated police unit...

Police! Step back!

..they're catching the criminals red-handed...

All those conmen, scammers, cheats on the fiddle -

now they're caught in the act and claimed and shamed.

Today the Insurance Fraud Enforcement Department

is on the trail of three suspects...

Does he reside here, sir?

Well, we need to speak to him, sir.

..a gang who deliberately cause road traffic collisions is targeted...

It's a matter of time before someone is seriously hurt.

..and the camera never lies - even if fraudsters do!

'I see quite a lot of surveillance evidence,

'but even I was quite shocked.'

The deceit level was probably the biggest that I've ever seen.

Herne Bay, on the Kent coast, was the perfect place...

for ex-policeman Michael Hoar to enjoy his retirement,

until a road traffic collision, caused by another driver,

left Michael injured and his car damaged.

He submitted a claim on the insurance of the driver responsible.

Susan Evans is Fraud Operations Manager

at the insurance company that handled the claim.

Mr Hoar had stopped at the entry to a roundabout

and our policyholder had collided with the rear of his vehicle.

The claim included a list of the injuries that Michael had suffered.

The injuries that Mr Hoar alleged to have been suffering with

were a whiplash to the back, and to the neck,

and an injury to his left foot, and his left knee,

and some psychological problems,

including flashbacks of the accident.

He was claiming for a significant level of injury,

which would require a hefty payout.

We were probably looking at between £30,000 to £40,000

in relation to the claim itself.

The large claim also included the cost of a piece of equipment

more associated with leisure than pain relief.

Mr Hoar put in a claim for £2,300 for a hot tub.

With such extensive injuries,

it seemed likely that the policyholder's car

would be a write-off, but this was not the case.

There was about £1,500 worth of damage

to our policyholder's vehicle,

which is not a significant accident by any stretch of the imagination,

and the injuries that were being complained of,

as the medical evidence was materialising,

were far more severe than one would have anticipated.

The inconsistency between the extent of the injuries

and the relatively minor damage to the vehicle set alarm bells ringing.

The insurer needed to get to the truth -

the best way was to go undercover.

The insurer called on the services of a group of investigators

who specialise in concealed cameras and covert filming.

Our role is simply to remain covert at all times.

To go in, take footage, and take as much footage as possible,

so that the courts can form a correct legal opinion

of someone's ability or disability.

Surveillance took place

on the same day that Michael had to attend an examination.

'On the day of his medical'

he presented himself as a person who needed a walking aid,

who was very, very, ill,

who was kind of almost shuffling along.

At one stage, he stopped

and clearly appeared to have some form of twinge in his back.

He presented himself as someone with a significant disability.

The footage supported Michael's claim

but the surveillance group had their suspicions.

This is a man who I suspect that he's under surveillance

at that given point in time

and wants to portray himself in a certain way.

However, other footage revealed Michael taking part in an activity

that blew apart the deception.

We saw him drag out, from behind his property,

a fairly substantial powerboat on a trailer,

attach it to a 4x4 and then drive it off to the local harbour

and then our last sighting of him was him sailing off into the sunset.

Under the sharp focus of the surveillance cameras,

it was apparent that this former pillar of the community

was trying to cheat his way to a payout that he didn't deserve.

What's shocking about this particular case

is that we're dealing with an ex-police officer,

an ex-police officer who would have been exposed to investigating fraud

and crime on a day-to-day basis.

So one would think that he would have a strong sense of right and wrong.

I see quite a lot of surveillance evidence

but even I was quite shocked.

The deceit level was probably the biggest that I've ever seen.

I think he was a very, very good actor.

With the insurer certain the claim was fraudulent,

the decision was taken to pursue the matter in a criminal court.

A decision was made to take it to a criminal court

and allow a judge to decide the outcome.

Before the trial,

Mr Hoar tried to claim that the person in the footage

was in fact his brother, but that was a lie, too.

There was no resemblance to his brother at all.

The case proceeded to trial.

Despite the formidable amount of evidence against him,

Michael initially pleaded not guilty,

but the footage was so compelling

that something highly unusual happened in court.

Some time into the trial, the judge stopped the proceedings

and suggested that it would have been within Mr Hoar's best interests

if he pleaded guilty.

He did eventually plead guilty

and received a six-month suspended sentence for 12 months.

For us, actually getting the genuine claim settled quickly and efficiently,

and weeding out these fraudulent claims is a good day's work.

A road crash gang that targets innocent drivers...

I think the whole experience for the young girl

was shocking and terrifying.

..and some photos of crash damage are decidedly dodgy...

The expert found that those images had been tampered with,

they'd been altered, they'd been taken from different cameras.

In the fight against the growing problem of insurance fraud,

an elite police squad have come together to form IFED,

the Insurance Fraud Enforcement Department.

Insurance fraud isn't a victimless crime,

£50 of each premium you pay each year goes to the fraudsters.

We have been set up to tackle that problem.

This dedicated team works tirelessly to bang up the crooks

and con men getting rich off other people's money.

Police! Step back!

It's our intention to create a climate of fear for the fraudster.

There's every chance an IFED detective

may come knocking on their door to arrest them

for committing an insurance fraud.

Police! Don't move! Stay where you are!

By April 2012, after only six months of operating,

they had already busted 80 fraudsters.

Adding up to £12 million of fraud under investigation.

These people are criminals, these are nasty people.

They don't go out to work on a Monday morning like most people do,

their work is submitting insurance fraud claims.

Today the Insurance Fraud Enforcement Department

is investigating

a suspected car insurance fraud.

It believes a multi-car incident was completely staged.

The collision involved a convoy of three cars

driven by people who knew each other

and were all travelling to the same place.

DS Mark Forster and his team are aiming to make three arrests.

The guy we're going to see first off this morning, erm...

is, he's involved, well, he was driving at the back of the convoy

and it's the vehicle that has allegedly caused this accident.

The vehicle that was at the front, the front of the three vehicles,

was a sports car.

We suspect the whole reason for this accident claim,

this insurance claim, was in order to get the sports car done up.

There was large repair costs that were submitted to the insurers,

erm, PI, personal injury claims,

replacement vehicle hire,

credit exchange and also even right the way down to recovery costs,

but it totalled somewhere in the region of £80,000.

They believe the first suspect on the list

was the driver of the car at the back of the convoy

who supposedly caused the crash by driving into the vehicle in front.

It's 6:30 in the morning

when Mark and his team arrive at the address.

The father of the suspect comes to meet them

and wants to know what's going on.

'City of London Police...'

We want to speak to him about an insurance fraud we believe he's involved in.

-That's all the detail I can give you, sir.

-Right.

-OK?

I can speak to him more about it, but I can't yourself.

-I take you are, sorry, you are his father?

-Yeah.

-OK.

Does he reside here, sir? He is?

Well, we need to speak to him, sir.

He reveals the first suspect is in the house

and the man in question eventually comes to talk to Mark.

We need to speak to you today, OK, in relation to a matter that's been referred to us,

in relation to what we suspect is an insurance fraud.

They take him down to the local police station for questioning.

With two arrests still to be made, IFED gets back on the road.

He's just been booked in and just been put in a cell.

He just came out with it, indicated that he knew what it was all about

and said that he didn't see any point in lying about any involvement.

So I don't know what he's going to say in interview,

we obviously didn't question him any further,

but he asked if we were picking up any of the others

that were "involved" were his exact words.

So what exactly that means, I don't know.

Next stop for the IFED team is a property where they believe

the second and third suspects will both be.

The second suspect was a passenger

and put in a claim for personal injury.

The third suspect is the owner of the sports car.

We think all these lads have got together, basically,

come up with this plan and decided to make up this accident

and put in numerous claims from it.

They arrive at the property and are hopeful both suspects will be in.

After securing the back of the building, they prepare to enter through the front.

It's vital to the success of the case that they find and question the two suspects.

But will they be at home?

-How many plants have you got?

-Nine in there.

-Nine?

I'm further arresting you on suspicion of cultivation of cannabis.

Criminal gangs that commit car insurance fraud

will stop at nothing to make a quick buck

and they don't care whose lives they're putting at risk.

One such gang operated on the outskirts of London

and what they did endangered countless road users.

They came to the attention of Detective Inspector Dave Hindmarsh

who heads up a special Met Police Traffic Unit.

His team was set up to combat the organised criminal gangs

who commit car insurance fraud through road traffic collisions.

My team came across the gang for Operation Coronado

initially as a result of anonymous Crimestoppers information.

The gang was using a dangerous technique

the Met traffic unit are well used to seeing on the UK's roads - the "induced collision".

First, the gang choose a victim.

Then they move their two cars into position in front of the target.

Gang car number one then slams on its brakes.

Gang car two reacts by braking hard, resulting in a rear-end shunt for the victim.

Gang car one then turns off at the next possible turning, pretending to be unaware of the crash.

It's highly dangerous

and the consequences for other road users could be deadly.

Operation Coronado was launched to gather proof of what was going on.

The Traffic Unit set up video surveillance.

It wasn't long before the intelligence they gathered

showed the gang was working in a very specific area.

They go round the roundabout on the A127 some nine times

looking for their victim, their target.

The surveillance footage shows a black Golf and a green Saab

circling for over six minutes as they choose their prey.

Eventually they identify a suitable innocent driver.

The Golf brakes and turns left away from the Saab.

The Saab brakes, overexaggerates its braking and stops.

Unfortunately, the young girl driving

crashed into the back of their Saab

and then she in turn was hit by a white van.

The crash happens on the other side of the roundabout

and the covert filming team just catches the end of the incident.

I think they chose that particular victim because she was driving a relatively nice car.

And she was a lone female,

so she's not going to cause them any problems

and the likelihood is that she would be insured.

What was planned as a shunt

had in seconds become a multi-vehicle pile-up.

I think the whole experience for the young girl

was shocking and terrifying,

not only to crash into a vehicle, but then to be hit from the rear.

But that's of zero concern to the gang,

who waste no time in collecting their victim's insurance details

so they can make a claim.

To make the case stand up, the police needed to prove beyond doubt

there was a link between the cars being driven by the gang members.

If we can show that there was association before or after between both parties,

then it assists us and it's quite crucial

in providing the best possible evidence to the jury.

The surveillance continued

and before long, the gang is spotted

trawling the roads for another victim.

This time they are filmed inducing a collision on a motorway slip road.

Car one brakes hard, car two brakes even harder

and the target can't avoid crashing into the back of them.

To ensure they have indisputable evidence, the police unit continue to trail the gang.

Eventually, their persistence pays off

when both cars stop at a petrol station car park.

The meeting up at the petrol station shows association.

It shows that the driver of the Golf

and the driver of the Saab are known to each other,

they've met up before,

they've then caused a crash, which clearly is no random act.

This was an induced collision

done so that they could commit fraud against the insurance industry.

The evidence was impossible to argue with

and the gang was brought to justice with 12 defendants sentenced to a total of 19 years and 6 months.

It was another successful result for the traffic unit,

but there are still other fraudsters

on the roads who care nothing for the safety of others.

It's a matter of time before someone is seriously hurt.

And my team will use every method available in order to catch them.

And that will be overt tactics, covert tactics,

the use of the helicopter, the use of surveillance teams.

Any tactic that we can think of,

we will use to catch these people.

Technology is increasingly used to detect fraud,

but in some cases, it's used to create fraud, too.

However, insurers are working hard to stay one click ahead

as this next case demonstrates.

Robin Reames is the Chief Claims Officer for an insurance company.

They were contacted by a policyholder

who reported an incident involving their vehicle.

The claim was for damage to a vehicle, it was a total loss.

So quite significant damage to a car, approximately £10,000 worth,

which would mean it was not something that we would repair.

Photos of the wreckage were sent to the insurer,

standard procedure for a claim of this size.

But there was something about the images that was less than picture perfect.

Our suspicions were aroused

because the photos that we received of the damage to the car

didn't look right.

What struck us was the damage to the front of the car.

The quality of the photos around the damage

to the tyres and the front wheels

were not consistent

with the photo quality of the rest of the car.

The case clearly required further scrutiny,

so the insurer called in an expert to put the evidence under the microscope.

Grant Roughley is the forensic IT consultant

asked to examine the images.

There are several methods we can look at

to see if these images have been tampered with in any way.

A lot of these images come from

digital cameras and they hold a signature to the images,

similar to a fingerprint,

which tells you where the picture was taken,

what date, time, what exposure levels.

In this case, digital fingerprints of these images were removed.

The absence of this kind of data

indicates that images have been altered from their original form.

This didn't necessary prove that the photos had been tampered with,

but then other evidence started to mount up.

The images varied from very low-resolution images

to very high-resolution images,

which wasn't consistent with a general use of a digital camera.

The inconsistency is particularly noticeable

in this picture of the interior.

As you can see here, it's a very high-resolution image

consistent with a professional photographer.

For somebody to take this type of shot would take two or three hours.

The discrepancies continued in other shots.

As you can see, the alloy wheel here is very rugby-shaped

as opposed to a normal wheel as you would expect, round.

Especially with the wall of the tyre,

it's very thick at the top here,

and then very thin

and goes virtually to nothing

on the back of the alloy wheel there.

This photo has been manipulated to show an alloy wheel,

which maybe wasn't on the vehicle at the time of the incident.

It seems to be a better standard of alloy wheel

than probably the one originally on the vehicle.

Not only were the pictures being altered,

new elements were actually being added on.

And the evidence of manipulation didn't stop there.

The airbags in this image are quite visible,

and as you can see from this image here,

there's no airbags visible in the windscreen.

Which leads to an unavoidable conclusion.

It could be possible that the person who's claiming for this vehicle

is trying to insinuate it was a high-impact collision,

or hoping to have the vehicle written off.

The evidence of fraud was stacking up.

Our final conclusion with regards to the analysis of these photographs

were in fact that they were poorly edited

and as such, we believe that they were used

in order to put forward a fraudulent claim.

A report of the examination was compiled

-and passed back to the insurer.

-The expert found

that those images had been tampered with,

they'd been altered, they'd been taken from different cameras,

and that the images that we had been sent showing damage to the car

was not actually a true reflection of that damage.

A fraudulent claim was clearly being made,

but on investigation, the insurer found that the driver

of the wrecked vehicle was totally innocent.

So they looked again at the other people involved in the claim,

the salvage yard and the assessor.

What they uncovered next indicated a much more organised outfit.

The salvage yard sent the assessor some photographs of the actual car.

The assessor then doctored those

to superimpose damage from a similar vehicle

that had more significant damage done to it

in order that that vehicle would be written off.

When the real case was it probably was a car

that could have been repaired at little value.

The salvage agent would then be free to repair it

and make a significant profit on selling it on later.

Although the case didn't result in a prosecution, the insurer recovered their losses.

They're also able to recognise and combat this type of fraud more easily.

I think what surprised us was the lengths that someone would go to

to doctor a photo and actually not do it terribly well.

But it is an indication of the lengths that many people will go to to commit fraud

and the way that we, Swiftcover, need to have highly-trained people

to identify potential fraud,

new methods, new ways of working,

new scams, and that is a constant challenge for us.

GULLS SCREECH

IFED has come to arrest

three suspects who they believe are connected to a suspected car insurance fraud.

They arrested the first one early that morning and are pursuing the remaining two suspects.

The trail has led them to a second property.

The IFED team is optimistic they will find both suspects inside.

Right, we're in.

As they enter the property, they are met by the second suspect.

All right, fella.

Firstly, OK, I need to speak to you today regarding an allegation that's been made

where it's alleged that you are involved in a conspiracy to defraud insurance companies.

Right? Let me... Hear me out, yeah?

OK, so in relation to that offence and that allegation,

I'm arresting you on suspicion of conspiracy to defraud

and we'll be looking to interview you later on this morning.

Although there's no sign of the third suspect in the flat,

they make an important discovery of another kind.

How many plants you got? Nine?

I'm further arresting you on suspicion of cultivation of cannabis.

In relation to that offence, I remind you, you are under caution.

-Yeah, sorry, mate.

-All right. No problem.

It's all right.

Well, that's the gentleman who we believe submitted the PI claim.

He was the passenger. We've gone in there and I've arrested him

in relation to that conspiracy to defraud.

And we've uncovered there a small, little cultivation of cannabis sort of factory, if you like,

he's got the air-con machine and everything else.

He's got about, he said, nine plants in there,

so he's cultivating cannabis.

Although he says it's for his own personal use,

that's quite a lot of cannabis.

Sorry?

Happy birthday for yesterday.

Take a seat. I'll try and drive carefully.

The search continues for the third suspect, the owner of the sports car.

We're on our way now to a company address

where we know that one of

the individuals involved in this fake claim is...

It's his place of work, basically.

They're like the body repair shop.

And a lot of the repairs to the damage and things

were meant to have been done through this company.

So, we've got two arrested so far, as you're aware,

we're going to go and pick up this guy who'll be the third.

The first chap this morning has been interviewed,

Scott's interviewed him this morning,

he's just come out of interview, and the guy has admitted on interview

that this accident is a complete fabrication,

two of the vehicles were taken to the scene where the accident was meant to happen

and one was deliberately driven down the side of the other.

The rest of the damage was then caused back at the body repair shop in the yard there

and they've caused damage to two of the other vehicles,

and then just got together, put the claim in, alleging that the accident has occurred.

So that's quite good progress for us.

With the first suspect's confession, the case is looking strong,

but IFED still needs to arrest and question the third suspect.

MECHANICAL WHIRRING

Is this him? Hello, mate?

I'm Mark Forster from City of London Police, OK?

Insurance Fraud Enforcement Department, OK?

I need to speak to you about an allegation that's been made,

where... The allegation is that you've conspired with others to defraud an insurance company.

BLEEP!

So in relation to that, I have to arrest you, OK?

You do not have to say anything, but it may harm your defence if you do not mention, when questioned,

something which you later rely on in court. Anything you do say may be given in evidence.

That's in relation, like I say, to conspiracy to defraud. OK? We'll have to take you away now.

Is your boss here, or are you in charge?

I'm in charge, yeah.

Right, let's stick you in the cage, mate. All right, jump in.

It's gone very, very, smoothly.

Very pleased that we've had one interview where the suspect

has admitted that this is completely a fraud.

And I fully expect that these three individuals

will be charged in the very near future.

So the message is, if you are committing this type of fraud

and you continue to do so,

then you'll probably get a visit

from officers from the City of London Police.

All three men were later charged and sentenced.

One man was jailed for 14 months...

Another was sent to prison for six months.

And the last male... received a six-month jail term,

suspended for 12 months.

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