Top Tips for Avoiding a ‘Crash for Cash’ Scam

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Known as a “crash for cash” scam, a staged collision is insurance fraud that puts innocent drivers, and their passengers, at physical and emotional risk of harm. After staging a collision, criminals will seek to maximize profits from their scheme in many ways including creating multiple insurance claims for exaggerated personal injury claims, towing/storage, and unnecessary body shop work. This focus on financial gain, excludes consideration for the pain and suffering that these scams can cause innocent drivers and bystanders.

Investigators are getting so good at uncovering this type of scam that these criminals will crash into innocent drivers and cause a real accident. The risk of injury to the occupants of the other vehicle, as well as innocent bystanders is significant in these cases. In one staged collision, the driver perpetrating the scam caused a real and serious collision and lost her life because of it. Based on this event, investigators uncovered a network of staged accident participants and facilitators, which included ordinary citizens, runners, chiropractors, physical therapists and lawyers.

These criminals have a few techniques to lure unsuspected motorists into road accidents so that they can file fraudulent insurance claims. In some cases, the offending driver has a car full of occupants looking to file medical claims for alleged injuries from the accident too. Additionally, a tow-truck operator (who is part on the scam) may show up almost immediately on the scene to take the car to an auto body shop that will charge for unnecessary repairs.

Types of Staged Collisions

Swoop & Squat: In a “swoop & squat” collision, a driver cuts off an accomplice in a second car who slams on the brakes in front of the victim forcing a rear-end collision.

Drive Down: While an unsuspecting driver is backing out of a parking spot, the criminal in an oncoming car waves at them to continue, as though they are waiting for the spot. As the victim continues to back out, the fraudster then accelerates, colliding with the victim’s car.

Bullet Left Turn: As a victim is waiting to make a left-hand turn, a criminal waves at them to continue through the intersection. As the victim begins to turn, the fraudster accelerates to hit the victim’s car.

Fraud Party: A “fraud party” is when multiple people are involved in a plan to commit a staged collision and pose as extra passengers in the vehicle. If occupants were not in the vehicle at the time of impact, they are known as “jump-ins”. Drivers and passengers involved in a “fraud party” may submit false claims for:

Vehicle damage
Injury assessment, treatment, rehabilitation and/or assistive devices
Loss of income and other services

In all of these schemes, the criminal will claim the accident was the victim’s fault.

Tips to avoid being scammed by a ‘Crash for Cash’ Fraud

Drive defensively

Keep an eye open for vehicles travelling slowly or erratically and maintain a safe braking distance.
Don’t assume someone waving you through an intersection means it’s safe to proceed

Do not pay cash

Criminals will try to make the crash look like the drivers fault, and then demand cash in return for not submitting the collision to insurers.

Document everything

Take pictures of the scene as well as the other driver’s licence, registration and insurance documents; additionally, get contact information from any witnesses.

Report the collision

Report the incident, along with your suspicions, to police and your insurer as soon as possible.

Don’t accept unsolicited help

Be wary of tow trucks who show up unsolicited quickly after a collision as they may be part of the scam.

Use a dash camera

Having a ‘dashcam’ can provide powerful evidence in the event of a staged collision.

Collaborating with law enforcement across the country to combat organized insurance fraud is critical.

Insurance crime is not a victimless crime, and Équité believes it is time we eradicate these crimes from Canada. In 2023, Équité partnered with Crime Stoppers to make it easier for Canadians to report insurance crimes. The Crime Stoppers tip line is available 24-hours a day, seven days a week. For those who prefer to submit tips online, click here. Both options are anonymous and confidential for tipsters.

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