March 7, 2007 by Canadian Underwriter
March marks National Fraud Prevention Month, and the Insurance Bureau of Canada (IBC) plans to release information throughout the month to help educate about and prevent this type of crime.
Insurance fraud is big business, said Rick Dubin, vice-president, investigations at the IBC.
It is a low-risk, high-reward crime that costs Canadians about $3 billion per year. However, there are steps that Canadians can take to recognize it. Report it. Stop it.
One of the most costly forms of insurance fraud is staged auto collisions, the IBC reports.
Also referred to as a swoop and squat, a vehicle suddenly speeds up and cuts off a squat vehicle, forcing the squat vehicle to slam on its brakes.
This causes the innocent victim in the vehicle behind to drive into the back of the squat vehicle, making them look like the at-fault driver for failing to keep a proper distance.
Usually, everyone who is in on the fraud (those in the squat vehicle) claims some sort of injury, and makes an accidents benefits claim.