'Roundabout traps' and 'sideroad setups': The UK's car insurance scam hotspots revealed

Fraudsters are deploying new tactics that force motorists to collide with them in a rising number of "crash for cash" scams.

Deliberate crashes caused by fraudsters who want to claim compensation by blaming innocent drivers are a key issue impacting motorists, according to the Insurance Fraud Bureau (IFB).

While sudden braking to cause an innocent driver behind to collide remains one of the most common ploys, the IFB is also seeing a spike in new trends with brazen tactics.

These include "roundabout traps", which see scammers deliberately moving into the wrong lane at busy roundabouts to force a collision. This is common in Dagenham in east London, according to the IFB.

"Sideroad setups" are also popular, with fraudsters encouraging drivers to pull out of side roads without the right of way and then driving into the side of them.

This has been reported near restaurants and nightlife areas in the West Midlands, particularly in Birmingham.

The IFB previously warned of moped scams, which involve moped and motorbike scammers driving into oncoming traffic, often with an accomplice, to accuse victims of fault.

These incidents are largely happening across Greater London and the Home Counties.

Other tell-tale signs of a "crash for cash" include vehicles with disabled brake lights or pre-existing damage, as well as passengers exaggerating injuries and being provided with prewritten insurance details after a collision.

Fraud involving ID theft

The bogus claims can also be exacerbated by ID theft, the IFB warns.

The bureau has seen cases of identity theft nearly double in the past two years, with criminals stealing personal information to carry out a high volume of fraudulent claims.

One of the cons to watch out for is new drivers having their details stolen after they or their parents shared their driving theory test certificate on social media.

Another is fake job listings, which have bogus delivery driver roles being listed to steal driving licence and insurance details from job seekers who think their application has been successful.

A third targets victims who were targeted in a crash for cash scam and exchange details with the fraudsters, or who have purchased fake car insurance through a "ghost broker". They may later find their information has been compromised.

Hotspots for car insurance fraud

The IFB has analysed 3.3 million claims to determine the UK's top hotspots for motor insurance fraud.

The findings show Dagenham in London is the most prevalent area for fraudulent car insurance claims in England, followed closely by Birmingham and Islington in north London.

Bradford, West Yorkshire, and Potters Bar in Hertfordshire also some of the highest number of claims in their areas.

Other top hotspots include Llanbadrig in Wales, Muthill in Scotland and Antrim in Northern Ireland.

Jon Radford, head of intelligence, investigations and data services at the IFB, said: "Insurance fraudsters are relentless, and their tactics are evolving fast.

"By revealing the UK's top motor insurance fraud hotspots, our aim is to help protect those who are at greater risk. Insurance scams can put people in danger and drive up costs for honest consumers, at a time when many are already under financial pressure.

"We're working closely with the police and insurers to stop this activity, and we urge the public to stay alert and report suspected insurance fraud to our confidential CheatLine."

Mark Allen, head of fraud and financial crime at the Association of British Insurers, added that IFB's analysis showed "fraudsters are becoming bolder and more sophisticated".

He said insurers were working closely with the IFB, stepping up intelligence-sharing and deploying new tools to identify and stop scams before they cause harm.

"We urge the public to stay vigilant and report anything suspicious, because every report helps us protect communities and hold criminals to account," Mr Allen urged.

Insurance fraud cases on the rise

The number of cases where insurance fraud was detected is on the rise.

There was a 12% increase in the number of fraudulent claims compared with the previous 12 months in 2024, amounting to more than £1bn, according to the Association of British Insurers.

The IFB received more than 9,400 reports of insurance fraud from the public in 2025, which is the highest annual figure on record.

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"Behind the figures are real people who suffer significantly. Insurance fraud can cause major distress and financial harm, from damaged credit scores to time spent trying to put things right," a spokesperson for the IFB said.

"Many victims only realise they've been scammed weeks or months later, once the damage has already been done."

The increase in detected fraud comes as the government has unveiled its new fraud strategy, which sets out a range of measures to crack down on scams, boost public awareness and support victims.

Lord David Hanson, minister for fraud, said: "Honest customers are facing higher insurance premiums because of fraudsters' pursuit of profits. We won't accept it and are working with the Insurance Fraud Bureau to take the fight to these callous fraudsters."

(c) Sky News 2026: 'Roundabout traps' and 'sideroad setups': The UK's car insurance scam hotspots revealed