Fake Accidents Costing Insured Drivers Billions: AAA

AAA reports a spike in "staged" accidents, and says anyone can fall prey to scheme

The AAA Motor Club is reporting an increase in staged car accidents as experts give advice on how to avoid becoming a victim.

Investigators said staged accidents are becoming a cottage industry for individual crooks looking to make a fast buck and whole criminal organizations made up of bogus victims, clinics, mechanics and lawyers.

The dense population and sheer volume of cars on the road make Southern California a target rich environment for this type of insurance fraud.

Helping to weed out the suspects is private investigator Dorian Bond. While he is often recruited for higher profile murder cases like that of Jodi Arias, Bond's bread and butter is insurance fraud.

β€œThese people don't work. They sit at home and think of scams to get money. It's called mailbox money. They're just getting checks every day,” Bond said.

After four days of surveillance, Bond found what he was looking for β€” a woman who NBC 7 is calling Rita.

When NBC 7 observed Rita, she was walking the dog, moving and bending without difficulty.

But Bond said β€œshe went to the doctor a week prior and said she can't bend over. She can barely walk and that she sits at home all day and lays in bed.”

Rita recently filed an insurance claim saying she was the victim of a car and paint truck collision.

According to Bond, further investigation by the National Insurance Crime Bureau indicated this is her ninth accident in three years. Behind the wheel of the truck was her boyfriend, Rita's relatives towed the vehicles and friends did the repair work, Bond said.

β€œMoney starts flowing from the insurance company to the injured neck, to the body shop, to the repair shop, to the towing company," Bond said.

James Quiggle, spokesman for the Washington-based Coalition Against Insurance Fraud, said Southern California one of the U.S.'s industrial centers for organized staged crash rings.

He said the collusion extends beyond those in the repair business. The bad guys operate under the advice of lawyers and doctor-shop for a diagnosis.

β€œIt's just a sore muscle or whatever a doctor says it is and can be worth thousands of dollars per claim,” Quiggle said.

In most staged accidents, the victim isn't in on it. Criminal teams profile drivers who are most likely to be insured: middle-aged, well-dressed, employed drivers behind the wheel of nice cars.

AAA of Southern California recently sent members a warning about three typical staged accidents:

  • The "Swoop and Squat” is when one car cuts off another, then slams on the breaks, forcing a rear end collision.
  • The "Drive Down" happens when you are gestured into the right of way then deliberately run into. The perpetrator always denies waving you through.
  • The "Sideswipe" maneuver occurs if you unwittingly drift into another lane while turning. Your car is hit before the correction.

β€œThis can raise your premiums considerably. You are a hard working policy owner; you shouldn't have to pay for someone else's scams,” Quiggle said.

The cost is estimated in the billions. The number of serious injuries and an even deaths caused by staged accidents is not known for sure, but investigators agree, they are more likely on the rise.

The bad guys are looking for distracted drivers, mothers fussing with kids and drivers on their phone, so pay close attention to the road.

If you are in an accident, call police and call your insurance agent right away. Take pictures of license plates, damage to vehicles and even people involved. Stagers don't want to be caught on camera, the experts say.
 

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