You’re driving along minding your own business, maybe taking the kids to soccer practice. And the next thing you know or don’t know, you’re caught up in an elaborate insurance fraud scheme.
Staged car accidents are nothing new and can come in a variety of forms. What is new, is that these fraudulent scams are on the rise again and costing insurance companies millions of dollars in fraudulent medical claims and costing victims higher insurance premiums. In New York alone, the Department of Motor Vehicles reported that there were 1,729 staged crashes in 2023, up 14 percent over 2022 and 34 percent over 2021.
One popular staged car crash scam is known as the “Swoop and Squat” Scam. In this scenario, the scammer (the “swooper”) drives aggressively or erratically in front of an unsuspecting driver, causing them to brake suddenly. The scammer’s accomplice (the “squatter”) is typically positioned behind the target vehicle and intentionally collides with it when the driver reacts to the sudden stop. This creates the illusion that the driver who was rear-ended caused the crash. The victim is usually blamed for the crash and may be pressured to pay for damages, while the scammers make false claims to their insurance company for injuries, damages, or even vehicle repairs. This is just 1 of hundreds of possible staged car crash scenarios.
Staged car crash scammers often tend to target wealthier communities to stage their crashes. They will generally prey on women or seniors who are driving alone, usually in a newer high-end car, assuming that they will have good insurance coverage, which is usually a good bet.
Red Flags of Staged Car Crash Scams
- If a driver in front of you suddenly slams on the brakes for no apparent reason, and it leads to a rear-end collision, this could be a sign of a staged crash. Be cautious if you feel that the driver was intentionally trying to cause the accident.
- Scammers often claim serious injuries that don’t match the circumstances of the crash. If the other party involved in the accident seems to be overly dramatic about injuries or seeks immediate medical attention despite minor impacts, it could be a sign of fraud.
- The scammer or their accomplices may have inconsistent accounts of what happened. They might change their story or fail to provide a clear explanation of the accident, or may refuse to cooperate with police or insurance investigators.
- Scammers may behave in ways that seem out of place, such as not wanting to exchange insurance information or refusing to involve the police. They may also insist on handling things privately to avoid official records.
- Scammers often try to avoid official insurance claims or police involvement. They may pressure the victim to settle quickly, often offering to take care of the issue directly without involving insurers or law enforcement.
How to Protect Yourself from Staged Car Crash Scams
- Always drive defensively and maintain enough distance between you and the vehicle in front of you to avoid rear ending them in case of a sudden stop. Be aware of your surroundings at all times, especially when you are pulling into traffic. Some scammers will purposely swerve into the lane you just pulled into for the purpose of staging a crash where you will take the blame.
- Always Involve the Police: If you’re involved in an accident, especially one where you suspect fraud, always call the police and file an official report. This helps ensure there is a documented record of the incident and the facts surrounding it.
- Take Detailed Notes: After any accident, take notes about the scene, the other driver, and any witnesses. Write down the make, model, and license plate of the other vehicle, and take photos of the crash scene, the damage, and any skid marks or other relevant details.
- Never Admit Fault at the Scene: Even if you feel responsible, do not admit fault at the scene of the accident. Allow the police and insurance companies to investigate the situation thoroughly. Scammers may try to manipulate the situation by getting you to take responsibility for the crash.
- Work With Your Insurance Company: Report any suspicious behavior or claims to your insurance company as soon as possible. Insurers have the resources to investigate fraud and may detect inconsistencies in the scammer’s story or behavior.
- Install a Dashcam: A dashcam can provide critical evidence in case you are involved in an accident, especially one that may be staged. The footage can help prove that the other party was at fault and protect you from fraudulent claims.