‘Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything’
Motorists who’ve had a colision are being cautioned that they might end up thousands of pounds worse off because they’ve been duped into thinking they’re dealing with their insurer when in fact, it’s a lookalike firm.
The Insurance Fraud Bureau (IFB) has highlighted a worrying trend where individuals, in the aftermath of an accident, try to reach their insurance company but instead get hooked by a third-party firm through misleading online ads that mimic genuine insurers.
These firms often pay for prominent placement in mobile search results, encouraging people to call them quickly. Once on the line, these companies may use general terminology to give the impression they’re associated with the actual insurer, the IFB explained.
Callers are then coaxed into handing over personal details under the guise of receiving “support services” like a courtesy car or help with a claim. This trap is especially risky for those recently involved in road accidents, as they might be disoriented and more susceptible to confusion.
Many drivers assume their insurance policy covers everything, not realising they’re not speaking to their real insurer, leading them to unwittingly sign up for extra services. It can take weeks before they notice the extra fees they’ve been charged, the IFB warned. Who pays the fees varies.
In the instance where the other motorist is liable, a company might go after their insurer to recoup the costs for its services. If the other side’s insurer disputes the fees, those who engaged the firm could still end up footing some of the bill.
However, in cases where the alternate driver is not responsible for the accident, the individual who unwittingly enlisted the firm’s help is expected to cover the expenses, according to the IFB. They reported a case where an individual received a claim exceeding £50,000 in unsolicited fees.
Jon Radford, the IFB’s head of intelligence, investigations and data services, warned: “Unscrupulous firms will deliberately pay for search engine ad results that misrepresent genuine insurers.
“Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything.”
“We’re working with insurers and the police to raise awareness and the message is simple – save your insurer’s contact details so you have it to hand if needed and report any signs of paid-ad spoofing scams to our confidential CheatLine.”
Pete Ward, head of claims counter fraud at Aviva, said: “We suggest that drivers save their insurer’s claims number in their phones or keep it handy in their vehicles.
“When customers mistakenly respond to misleading online ads, we take immediate action to identify and investigate, sharing intelligence with the IFB and relevant regulators,” he explained. The vigilant monitoring carried out by the insurance company has resulted in successful removals of dishonest advertising and related web domains.
Mr Ward cautioned: “We’ve seen too many instances where customers contact us about a claim, only to find they never made a claim with Aviva.
“Imagine the concern when customers realise they don’t know who they are dealing with, what they have agreed to, or the implications of these agreements.
“This confusion puts customers at risk of extreme financial harm: they enter agreements for services like recovery, storage, repair, and hire, believing these costs are covered by their insurance.”
“However, if these costs aren’t recovered from the other party’s insurer, the customer may be liable.”
Here are some tips from the IFB, a not-for-profit organisation which acts as a central intelligence hub for its industry members, to help insurance customers to avoid misleading ads:
1. Keep your insurer’s contact details written down or saved on your phone.
2. Download your insurer’s app as this usually has customer service support functionality.
3. If searching for your insurer online, go on the insurer’s website to obtain contact details.
4. If you are viewing a sponsored ad result, check the URL and phone number before sharing any personal information and agreeing to claims services.
5. If anyone has concerns relating to paid-ad spoofing, they should tell their insurer and contact the IFB’s confidential CheatLine online or via 0800 422 0421.
