A British anti-fraud accident investigation firm is warning drivers to watch out for a new tactic in which criminals deliberately cause car accidents, then benefit from insurance payouts.
In the tactic, dubbed "flash for crash," a driver who has the right of way flashes his headlights to signal to another car to go ahead of him. Then he accelerates, causing a collision. He denies flashing his headlights, and points out he had the right of way. Under the law, the other driver is at fault.
The scammer can then file an insurance claim and collect the cash.
According to the investigation firm, APU Ltd, about 380 false insurance claims are made every day in the UK, adding up to £1.7 million ($2.66 million) per year.
APU works with law enforcement agencies to combat fraud, and says drivers should be vigilant for suspicious activity, but "should, at all times, maintain their concentration on the basic rules of safe driving."
This week, two defendants from a "flash for crash" investigation were ordered to re-pay £243,119, under the Proceeds of Crime Act.
Here's a chart explaining how "flash for crash" works:
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