An increase in the number of people being put on the insurance fraud register while deducting living expenses

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Around 100 people are being added to the insurance fraud register every week amid fears that rising living costs could drive more people into crime.

The Insurance Fraud Bureau (IFB) said it had seen a 17% increase in people being added to the Insurance Fraud Register (IFR).

The IFR is a national database of insurance fraudsters, accessing 82% of the UK general insurance market. When an insurance application or claim turns out to be fraudulent, the insurer can link individuals, businesses and information such as emails and phone numbers to the fraud on the IFR.

The IFB, which manages the register, said around 23,000 people were on it, and IFR record holders could be denied a wide range of services by UK insurers for up to five years.

Individuals on the database may be denied insurance services or have to pay significantly higher prices due to increased risk.

Holding an IFR record may affect access to services including business insurance, health cover, home insurance, income protection, life cover, motor insurance, pet cover, savings and retirement schemes, travel insurance and investment funds. .

Among individuals, unemployed or low-income individuals are more likely to have an IFR record, the IFB said. Millennials, ages 26 to 41, make up half of the cases.

Between the beginning of July last year and the end of June this year, more than 5,058 people were added to the register, which equates to about 100 people per week.

That’s a 17 percent increase from 4,319 in the previous 12 months.

The IFB said it commissioned YouGov research which showed that one in five young people would consider turning to fraud if they were struggling financially.

About 21% of 18- to 24-year-olds are “likely” to provide false or misleading information on an insurance application to save money if they are struggling financially.

The figure was one in six (16%) for 25- to 34-year-olds and 9% across all age groups.

There are various legitimate ways to save on insurance, such as shopping around through the British Insurance Brokers Association or finding a broker.

For general assistance, the Association of British Insurers (ABI) provides information on what consumers may need to consider when taking out insurance.

The IFB has launched the Don’t Chance Fraud campaign to help people understand the implications of turning to fraud and ending up with an IFR record.

There are no winners when it comes to cheating.

Ben Fletcher, director of the IFB, said: “As millions of people struggle with the cost of living crisis, the sad reality is that more and more people are opening up to insurance fraud and the seriousness of record keeping insurance fraud. Consequences may be faced.Register.

“There are no winners when it comes to fraud. If someone knowingly lies on an insurance application or claim, they will be placed on the Insurance Fraud Register which will prevent them from accessing essential insurance services for years to come. may refuse. They may face criminal prosecution. In addition, fraudulent extra costs make insurance unfairly more expensive for everyone.

“I know it’s easier said than done, but if someone is struggling to make ends meet they should seek financial help and see how they can best manage their finances. are

“The insurance industry really wants to help its customers during this difficult time, so please contact your insurer if struggling with payments. Whatever your next steps are, don’t let fraud be a part of… It just makes things worse.”

Zurich UK recently said it has seen an increase in fraudulent insurance claims as the pressures of living increase.

Aviva said it expects more fraudulent claims as people come under financial pressure, particularly on home, small business and liability insurance policies.

According to the IFB, here are the top five reasons why people visit the register:

1. Submission of fake no claims discount documents. 2. Fronting – which is when someone puts themselves down as the designated driver for a vehicle of which they are the owner/primary driver.3. Exaggerating loss or injury that would otherwise be a legitimate claim. 4. Making a claim for lost items which are later proved to be in the possession of the owner.5. Crash (stage motor collision) for cash scams.

For general assistance, the Association of British Insurers (ABI) provides information on what consumers may need to consider when taking out insurance.