Latest Data Shows Strong Diversity on ID Theft

Tip of the hat to the ABI for doing the research on ID theft and then cross-referencing it by region or town/city. This is important for insurers as it allows premium rates and decision-making based on the reality of risk, not politically expedient parameters or `outcomes’.

Insurers in the Motor sector would be wise to crossmatch numberplate offences reported by the local Police, MoT failures, no licence or insurance, CCJs, benefit fraud, immigration/employment offences etc and overlay those by region, town or street.

That way a true picture of risk – at the point of quote – can be assembled within seconds.

On a side note it’s interesting to speculate how much influence the Neil Hopper case has on the ranking of St Just in Cornwall being a hotspot for insurance fraud. Is the ranking based on claim value or number of claims from separate policyholders?

Here’s the word;

For the first time, an analysis of over 2.4 million insurance policies by the Insurance Fraud Bureau (IFB) has revealed the top policy fraud hotspots. In England, areas in West Yorkshire, Greater Manchester and the West Midlands top the list. While Glasgow leads in Scotland, areas in the Isle of Anglesey in Wales, and County Fermanagh in Northern Ireland top their respective hotspot lists.

The hotspots follow an unprecedented rise in identity theft, with the IFB reporting a seven‑fold increase in stolen details used for insurance scams over the past year. As a result, the public is urged to watch out for signs of their details being misused and report insurance fraud to CheatLine.

Top policy fraud hotspots

England

 Scotland

 Wales

Northern Ireland

Jon Radford, Head of Intelligence, Investigations and Data Services at the IFB, said:

“Insurance scams using stolen details are on the rise, indicating more people are being targeted with identity theft. We’ve launched a Prevention campaign to urge everyone to stay alert, particularly those in hotspot areas, against signs of their personal information being used in fraudulent insurance applications.

“While anyone can be targeted, insights suggest insurance fraudsters often steal details from those they believe are cheaper and easier to insure – including people over 60, or individuals seen as financially secure or low-risk.

“We’re working with insurers, police and industry watchdogs to tackle the issue and urge anyone who thinks their details have been used in an insurance scam to report it to our CheatLine.”

IS THERE A CASE FOR DIGITAL ID?

Record-high in stolen identities fuelling insurance fraud

New IFB figures show that there has been a year-on-year rise in cases of identity theft linked to organised insurance fraud networks, with levels now over seven times higher since 2021. An increase in data phishing scams has also been detected by the organisation.

The rise follows a recent announcement by Cifas, a not-for-profit organisation which protects public, private and voluntary sectors from fraud, who has reported a 25% rise in insurance fraud, linked to identity theft and false applications. Insurance fraudsters often use stolen details to take out fraudulent insurance policies to facilitate a wide range of harmful scams.

Examples include taking out fraudulent policies in the names of people who are cheaper to insure and then selling them on as doctored certificates to unsuspecting victims – in a scam known as ghost broking. Stolen details have also been used to facilitate crash for cash scams which involve fake motor claims, as well as using misrepresented policies to steal cars through fraudulent finance arrangements.

Twisting the truth on insurance applications

While identity theft is a key driver in policy fraud, there may also be instances of opportunistic fraud in hotspot areas, with people using false details to reduce insurance costs, such as by submitting a false no claims discount (NCD) or not disclosing a full driving history.

A YouGov survey (commissioned by the IFB in 2024) found that nearly one in five people (17%) would find it acceptable to lie on an insurance application to help save money. An issue potentially linked to financial hardship.

To help protect people from making a costly mistake, the IFB has been reminding the public through its ongoing Fraud Cons campaign, that what might seem like a small lie to save on the cost of insurance is still fraud. This could lead to a record on the Insurance Fraud Register (IFR), making it harder to get insurance for years to come, and a potential criminal charge.

Being truthful from the start is the safest way to stay protected.

Mark Allen, Head of Fraud and Financial Crime at the ABI, said:

“Amidst an increase in identity theft – which is often aided by the use of generative AI – it’s essential that consumers remain vigilant to protect their personal information from policy fraudsters. The IFB’s findings underscore the evolving nature of this crime and its impact on victims when false insurance policies are taken out or fraudulent claims are made using their details.

“At the same time, it’s vital that customers are honest and accurate when applying for their own insurance. Even small misrepresentations or omissions in an application can constitute policy fraud, leading to potentially serious legal and financial consequences. By protecting yourself from fraudsters and ensuring your own actions are above board, you can help maintain a fair and secure insurance market for all.”