ABI: Insurance fraud up 30% since 2007

Insurance fraud has increased 30% since 2007, the Association of British Insurers (ABI) is expected to confirm in a report this week.

According to the Observer newspaper, the ABI will report that undetected fraudulent claims now cost an estimated £1.9 billion per year, compared to £1.6 billion two years ago.

Despite rising fraud costs, the ABI claims progress is being made.

“Through closer scrutiny of proposal forms and claims, as well as the exchange of information through industry-wide databases, the net is tightening on the cheats,” said Nick Starling, ABI director of general insurance and health.

“Anyone who sees insurance as a soft touch can end up with a criminal record, credit problems and costlier and harder-to-obtain insurance.”

The ABI’s report will also show a rise in “walk away” fraudsters where a fraudulent claimant decides not to pursue the claim after being asked for more details from the insurer.

Motoring show Top Gear was recently criticised by the insurance industry for advocating the fraudulent practice of fronting to save young drivers money on their car insurance.

“Fronting is a common fraud and we would urge parents to avoid the practice as, if found out, the consequences could be severe,” said Hayley Parsons, chief executive of Gocompare.com.

Drivers warned: 'fronting' car insurance can set you back

Covering your kids' car under your own name can lead to big trouble, says Lisa Bachelor

Jeremy Clarkson, Richard Hammond and James May have landed themselves in hot water for promoting it on Top Gear. Now it seems more people than ever are doing it.

The number of cases of the fraudulent practice of "fronting", when a parent insures a child's car in their own name but adds their child, the real main driver, to the policy in an attempt to keep costs down, has shot up in the past two years.

A report to be released by the Association of British Insurers on Thursday is expected to show that this and other forms of insurance fraud have increased by 30% since 2007. The report will show that the cost of undetected fraudulent general insurance claims now costs the industry an estimated £1.9bn a year, compared with £1.6bn two years ago.

The crackdown by insurers on cheats during the process of making a claim has led to more fraud at the "front end", when insurance policies are taken out, says the ABI - though insurers are cracking down on this now, too.

"Through closer scrutiny of proposal forms and claims, as well as the exchange of information through industry-wide databases, the net is tightening on the cheats," said Nick Starling, the ABI's director of general insurance and health. "Anyone who sees insurance as a soft touch can end up with a criminal record, credit problems and costlier and harder-to-obtain insurance."

During a recent Top Gear episode, presenters competed to see who could get the best car and the cheapest insurance premium for a 17-year-old male driver. "It soon dawned on us that the only realistic way of getting covered when you are 17 is by going on your parents' insurance," May said. "So we got back on the phones pretending to be dad."

While fronting is classed as insurance fraud, many parents carry it out without ever realising it is a criminal offence.

Some insurers have changed their underwriting criteria to prevent this by charging for the highest-risk driver - even when this isn't the main driver, says Hayley Parsons, chief executive of Gocompare.com.

"Fronting is a common fraud and we would urge parents to avoid the practice as, if found out, the consequences could be severe," she says.

May's co-presenter Hammond was quick to add a caveat during the Top Gear episode: "Can I just point out before we do move on; if you do decide to put yourself on your parent's insurance and you have a crash, and the insurance company find out that it wasn't really your car ... they won't pay out, then they can prosecute you and you might go to jail."

In reality, if fronting is detected, insurers can refuse to pay out for any claims or can settle a third-party claim and recover the cost from the parent as the policyholder. If the insurer declines a claim, the young driver could be treated as uninsured and could be fined hundreds of pounds and receive six penalty points (an automatic ban for new drivers). They will also face higher insurance costs in the future.

The ABI report will also show an increase in "walk away" claims. These involve an insurer, suspicious of possible fraud, asking the claimant for more details of a claim, only for the claimant not to pursue the claim. Though the ABI says this is not confirmation of fraud, it is a likely indicator of such behaviour.

There has also been a 35% rise in claims for high-value home and leisure items such as LCD TVs, laptops and high-end watches. Again, the ABI suspects many of these to be fraudulent.

Lisa Bachelor
The Observer

Fraud adding £44 a year to cost of insurance

Insurance fraud has soared 24% in the past two years and is adding an average £44 a year to British households' insurance bills.
An estimated £1.9bn of fraudulent general insurance claims go undetected a year, up from £1.6bn two years ago, said a report from the Association of British Insurers. That equates to £5.2m every day.

One woman claimed for the theft of her camper van even though it was written off a decade ago.

Popular scams included withholding information about speeding fines, listing an incorrect address for car insurance or listing a parent as the main driver of a vehicle that was actually used mainly by their child - something that gained much coverage after being highlighted in an episode of BBC's Top Gear last month.

The ABI said insurers were fighting back and detecting more of fraud.

Nick Starling, director of general insurance and health for the trade body, said: 'There is no hiding place for insurance cheats.'

thisismoney.co.uk

Organisations team up to fight ‘crash for cash’ claims

ACTION to combat so-called ‘crash for cash’ insurance scams has been stepped up.

Huddersfield was fifth in May’s league table of the worst towns and cities for dodgy claims.

In the scams, fraudsters drive to busy junctions then perform unexpected, dangerous emergency stops designed to cause members of the public to collide with them.

Claims are then made to the motorist’s insurer, often including several accounts of fictitious injuries from members of the gang.

The estimated annual cost to the UK economy is £350m.

Now the National Fraud Authority has teamed up with the Ministry of Justice, representatives from the insurance sector including the Insurance Fraud Bureau, police and professional bodies to share information in a bid to smash the criminal networks.

Attorney General Baroness Scotland said: “The NFA is looking to strengthen the response to this dreadful crime.”

Merseyside police and fire service join forces to create anti-arson squad

POLICE are joining forces with the fire service to launch a specialist Flare Team.

The unit will tackle arsons on commercial properties which result in false insurance claims.

The Flare Team is one of the first of its kind in the country and is being run by dedicated officers to investigate and prevent insurance fraud in the light of the economic downturn.

Merseyside police Chief Constable Bernard Hogan-Howe said: “I understand that the economic downturn is having an adverse effect on many businesses but arson with the intent of gaining through false insurance claims is not a way out.”

Merseyside fire and rescue service’s acting chief officer Michael Hagen said: “Arson-related fraud increases in times of recession, which adds to the risk to our communities and firefighters, as well as costing jobs.”

Kevin Core
Liverpool Echo

Lesbian policewomen guilty over insurance fraud crash

A lesbian couple who worked as police officers have been convicted of deception after lying about who was driving in a car crash.

Diane Reeves-Emery, 38, and Charlotte Eccles, 23, were found guilty of obtaining financial advantage by deception at Stafford crown court.

Reeves-Emery had claimed she was at the wheel when Eccles hit a kerb, causing £3,000 of damage. This meant the excess charge of £500 could be halved to £250.

The fraud was revealed during a hearing into alleged harassment by Reeves-Emery. The couple, who both worked for Derbyshire Constabulary, split in 2007.

Eccles told the court she was "petrified" of her former lover, claiming Reeves-Emery had been verbally and physically abusive to her.

Both women pleaded not guilty to the deception charge, with Reeves-Emery saying she had "no reason to lie". She was also found guilty of another charge of deception for failing to notify her own insurers of the crash when renewing her policy days later.

The pair will be sentenced at a later date.

Car insurance fraud levels increase

Households are paying an average of £44 in higher car-insurance premiums to cover soaring levels of fraud, according to the Association of British Insurers.

It reports that suspect claims totalled £730 million last year, 30% more than in 2007, while an estimated £5.2 billion of fraud goes undetected, up 24%.

And as the industry gets better at detecting fraudulent accident and theft claims, people are resorting to lying about their circumstances to save on their premiums.

This includes withholding information about motoring convictions, using the wrong address and listing a parent as the main driver.

Meanwhile, dodgy home-insurance claims involve people deliberately damaging furnishings or electrical goods, with a 35% increase in claims involving high-value watches, laptops and LCD televisions.

Motor insurance had the highest level of fraudulent claims by value, particularly staged accidents, while household policies saw the highest level of detected fraud by volume.

Top Gear’s insurance fraud blunder

Insurance advice from Top Gear presenters should not be taken seriously, a financial expert has warned.

In this week’s episode of the popular motoring TV show, presenter James May advised young drivers that they could slash their insurance premiums by getting their mum or dad to insure their car for them.

“The only realistic way of getting covered when you are 17 is by going on your parents’ insurance,” May said.

However, as May’s co-presenter Richard Hammond pointed out, ‘fronting’ insurance in this way is illegal and can result in hefty fines, points on the driving licence, and even a jail sentence.

“If you do decide to put yourself on your parent’s insurance and you have a crash, and the insurance company find out that it wasn’t really your car, they won’t pay out,” Hammond said.

“Then they can prosecute you and you might have to go to jail.”

Hayley Parsons, chief executive of GoCompare.com, echoed Hammond’s advice.

“While few people would take Clarkson’s suggestion that a sex change could help 17 year old boys halve their premiums seriously, fronting is a common fraud and we would urge parents to avoid the practice as, if found out, the consequences could be severe,” Parsons said.

She added that drivers caught fronting will find it harder to get car insurance in the future “because the majority of insurers [will] refuse them cover.”

David Masters
Insurance Daily

Boat-related insurance claims 'likely to increase in summer'

Thefts occurring from boats are 68 per cent more likely to take place while they are moored in the summer months, rather than stored away for the winter, Saga Boat Insurance has found.

According to research conducted by the group, the risk of boat owners having something stolen from their floating bases is greater in the warmer weather and the most common theft is outboards.

The second most frequently stolen item is onboard equipment, the typical insurance claim for which being £1,400, the group's research also found.

Bearing these findings in mind, Saga Boat Insurance is urging boat owners to ensure they take sensible steps towards securing their vessels by fitting them with wheel clamps, equipment and boat alarms, outboard motor locks and hatch, door and window locks.

Insurance firm Zurich, which also offers boat cover, claimed that cases of boat-related insurance fraud were on the rise in May of this year.

Money News UK

Anti-fraud unit expands

THE increasing sophistication of crooks has prompted Bolton law firm Keoghs to launch two new teams within its counter-fraud unit.

The firm has seen a 40 per cent growth in the amount of work handled by the unit in the last 12 months.

Two new specialist teams will focus on first party and complex frauds to join teams already in place for motor and liability fraud, fraud rings and intelligence services.

James Heath, director of counter-fraud strategy at Keoghs, said: "As insurance fraud continues to grow dramatically and fraudsters become ever more sophisticated, it is vital that we continually renew our structure and processes and continue to invest in developing and attracting the best people in the industry.

"Tougher times are leading to more bogus claims, and the first party fraud team will look at suspicious claims made by policyholders across a range of business lines, from household and motor to commercial property and creditor insurance.

"The complex fraud team will deal with complex and high value suspicious claims including strategic litigation and the pursuit of sanctions against proven fraudsters."

The firm has seen a growth in staff to boost the busy team, including the appointment of Anthony Dale as a senior associate.

Anthony, previously head of the Manchester fraud team at DWF, has seven years' experience working for major insurers to tackle wide ranging frauds, including working alongside the police and Insurance Fraud Bureau on a number of high profile cases involving organised fraud rings.

Jill Burdett
Manchester Evening News

UN says millions of North Koreans at risk of starvation

Millions of North Koreans are at risk of starvation, thanks to new restrictions on aid imposed by the country’s dictatorship and the drying up of international assistance after its provocative nuclear test.

The UN’s World Food Program (WFP) said that it has received barely $75 million dollars, (£45 million) 15 per cent of the $504 million it needs to feed 6.2 million North Koreans during the lean months up to the November harvest. This target in itself was already fewer than the 9 million people who are estimated to be in need.

For the time being there is no risk of a repeat of the famine of the late 1990s, in which hundreds of thousands, and by some estimates millions, died. But the food shortages threaten to cause long term problems among children, who are especially vulnerable to the physical and intellectual stunting which can be caused by malnutrition.

“We have not really received any contributions after the nuclear test was carried out,” said Torben Due, WFP’s country director for North Korea, at a press conference in Beijing. “It is a very serious problem for the population … as they do not have enough to eat.

“For adults, it doesn't mean a lot if you live for a few months on a diet of cereals and vegetables, but for children, it is critical. We see an increase in the number of children being admitted to hospitals with severe malnutrition.”

WFP’s work has been made all the harder by new restrictions imposed by the North Korean government. It is permitted to work only in 57 counties, compared to 131 formerly. And it has been banned from employing Korean speakers, apparently out of fear that they may suborn North Koreans into whom they come into contact. As a result, the organisation has 16 employees in the country, down from 59.

North Korea’s nuclear test on May 25 was followed by a series of provocations, including the testing of short range missiles and a threat to abandon the armistice which brought to an end the 1950-53 Korean War. It was met with international outrage, especially in the US, Japan and South Korea, and the promise of stiff new sanctions against North Korea and those who support it.

The US Treasury announced that it was blacklisting a North Korea and Iranian company which it claimed, were front for laundering funds related to weapon proliferation. The two firms – Namchongang Trading Corporation and Iran's Hong Kong Electronics – will have any US assets seized and US companies will be forbidden by law from doing business with them.

“Today's action is a part of our overall effort to prevent North Korea from misusing the international financial system to advance its nuclear and missile programs and to sell dangerous technology around the world,” said Stuart Levey, Treasury undersecretary for terrorism and financial intelligence.

Meanwhile a North Korean ship which the US said it suspected of carrying sanctioned military goods towards Burma reversed course on Sunday, according to news agency reports. The Kang Nam 1 was the first ship to be monitored under the recent sanctions. “Our ships are sacred and impregnable places where our sovereignty reigns,” North Korea’s Rodong Sinmun (Workers’ Newspaper) wrote. “If anyone hurts them, it would be considered a grave military provocation against us. This kind of action will immediately meet with our self-defensive military actions.”

Richard lloyd Parry
Times Online

AN INSURANCE fraud investigation company has announced a redundancy plan which could see its Peterborough workforce slashed by nearly 20 per cent.

AN INSURANCE fraud investigation company has announced a redundancy plan which could see its Peterborough workforce slashed by nearly 20 per cent.
Bosses at Volume Fraud Management (VFM) Services told staff at the company’s headquarters in Orton Southgate they were being forced to cut costs because of the recession.

The firm insists no decisions have yet been made about redundancies, with a consultation process looking at ways to reduce the wage bill only getting under way last Friday.

But VFM’s head of human resources, Meera Bhatt, said workers have been told that between 10 and 18 per cent of the company’s 116-strong city workforce could face losing their jobs.

She said: “We investigate insurance claims on behalf of the big insurers, and we rely on the work coming in to us from those insurance companies.

“Because of the economic downturn, insurers nationally are experiencing low claims volumes. Why that is I don’t know, especially as the pundits predicted that fraudulent claims would increase with the recession.

“The levels of work coming in to us have dropped, and we have had to examine our staffing needs as a consequence.

“We are considering implementing a redundancy programme, but no firm decisions have been made.

“The vast majority of the workforce will have secure jobs, but we have got to be realistic about the future if the volume of work is not there.”

Ms Bhatt added that alternative options to redundancy would be considered, including the possibility of existing workers being kept on with reduced salaries.

She said: “A pay cut is not something we will be enforcing, but if people come forward to say they will take reduced wages if it saves their jobs and the jobs of others, we will, of course, consider it.

“We have a lot of skilled staff and we want to retain that skill if we possibly can.”

VFM Services, which also has a base in Hitchin, Hertfordshire, opened an office in Southgate Park, Orton Southgate, in September 2004.

Since then, the Peterborough workforce has doubled from 58 to 116.

Keoghs expands Counter-Fraud unit

Keoghs has established two new teams within its Counter-Fraud Services unit.

The law firm says it is meeting the challenges posed by growing levels of fraud and its increasing sophistication, as reflected by the 40% rise in new instructions received in the past 12 months.

The new teams are specialist in nature and will work alongside the firm’s motor and liability, fraud rings and intelligence services teams.

The “first party” unit will focus on suspicious claims made by policyholders across a range of business lines, including household, motor fire/theft, commercial property and creditor insurance.

The “complex” team will deal with technically complex and high value suspicious claims, including strategic litigation.

A number of senior members of staff have been recruited including Anthony Dale, formerly head of the Manchester fraud team at DWF.

The rise in insurance fraud has been alarming, with the Association of British Insurers (ABI) reporting in April that its members were detecting record levels.

The body also published research that suggests one in five UK adults would not rule out making a fraudulent claim in the future.

Last year, the level of fraudulent claims increased by an annual 17%, to 107,000; in value terms the rise was much steeper, at 30%.

Home insurance fraud was particularly prevalent with 55,000 false/exaggerated claims detected by ABI members.

Gill Montia
Insurance Daily

Fraud costs Yorkshire £95m

FRAUD in Yorkshire and the north east has rocketed 1,900 per cent compared to the same period last year, according to research.
The findings from accountants and business advisers BDO Stoy Hayward, based in Leeds, reveals a massive increase in fraud in the region – rising to £95 million in the first six months of 2009 compared to £5 million for the same period last year.

The region's financial and insurance sector accounted for the highest proportion of all cases.

But the real estate sector was hardest hit.

The general public were also victims of fraudsters – totalling £3.5 million.

Simon Bevan, who heads the firm's national fraud team, said: "It comes as no surprise that fraud is rocketing but I predict we will see overall fraud in the UK hit £3 billion per annum.

"There is a whole wave of commercial lending fraud that is yet to be revealed by UK and overseas banks."

Warning: Steer clear of the car smash insurance con

Drivers are being encouraged to fight fake accident cheats. Savvy motorists who keep their eyes open and are ready to react could help tackle the growing problem of crash-for cash accidents.

These staged accidents, where an innocent driver is forced to smash into a vehicle used by fraudsters, are a frightening menace.

By padding out claims with fictitious passengers, dubious injuries and fake repair costs, each shunt can be inflated into a lucrative pay day - as much as £50,000 in some cases.

While the chances of being involved in a staged accident are still low, insurers say it is a growing problem. Susan Jones, head of the investigations unit at the Insurance Fraud Bureau, says: 'We believe there are about 30,000 incidents reported to insurers every year that relate to staged, invented or induced accidents.'

As Financial Mail reported last month, bogus claims add about £40 to the annual insurance bill of the typical motorist.

There have been successes. The IFB reports an 11 per cent reduction in the estimated number of incidents over the past two years. But drivers can do their bit to fight back. Insurers are trying to raise awareness of the problem.

Pete Markey, spokesman for insurer More Than, says: 'If more drivers are aware of the dangers, it becomes more likely that they will be able to report anything unusual.'

Many staged crashes take place at busy roundabouts and motorway slip roads and there are some common warning signs.

Take extra care: Crooks know your attention will be split between the road ahead and traffic approaching from other angles. You may find that the car in front has not proceeded in the way that you expected.

Be aware: Gangs may use several vehicles with one following behind that tries to bump your car into the vehicle. Other drivers may be following who act as
witnesses.

Defensive driving trainer Dave Bertie says: 'Use all three mirrors to be alive to what is going on around you. Double the frequency of your checks as you approach a junction or slip road.'

Keep your distance: In these situations the driver in front may brake suddenly. Crooks sometimes disconnect brake lights, making it harder for you to stop in time. Be wary of over-helpful witnesses: If witnesses appear quickly, they may be a part of the act.

Andy Buck, fraud manager at insurer Aviva, says: 'Our fraud detection methods have evolved to close down organised accident gangs more quickly, but with the help of the public and honest policyholders we can do even more.'

The Insurance Fraud Bureau has a checklist to follow:

* Do not admit blame or say anything other than 'it is a matter for our insurance companies'. If anyone is injured, call police.
* The other vehicle is crucial, so note down a basic description. Check how many passengers are in the other vehicle and note their descriptions.
* If possible, take pictures of the accident scene, damage to other vehicles and, if you can do so without inflaming the situation, of the other driver or passengers.
* Be wary of companies that contact you quickly and out of the blue, offering to repair your car or provide a replacement vehicle.
* Share your suspicions with your insurer as soon as possible. If you think there has been fraud, call the Insurance Fraud Bureau Cheatline on 0800 328 2550.

Defensive driving is the best protection

The isolated highways of Africa are a world away from Britain's congested roads, but defensive driving skills that have been developed there might come in handy when you pop to the supermarket.

The techniques are used to keep workers safe from kidnap in danger spots.
Dave Bertie, a former Special Forces soldier and close protection officer with 28 years in government service, trains drivers in Nigeria to keep their VIP passengers safe from attack. More Than arranged for Bertie to put me through my paces.

Part of the trick to staying safe is understanding the capabilities of your vehicle.
Bertie, who is based in Shropshire but runs training courses in high-risk locations, says: 'A modern car can do a lot more than you think. The average driver will reach their personal limit long before they reach the limit of the car.'

He demonstrates the point by revving the Vauxhall Astra test car up to 60 mph then throwing the steering wheel hard to the left while jamming on the brakes.

It is the sort of action that most of us would not dare to try, expecting the car to flip over. In fact, the standard diesel Astra simply screeches to a halt in a curve of about eight car lengths.

On my first attempt, I take twice as long to stop, because I am being too tentative on the brakes. 'You should be standing on the brakes, lifting yourself out of the seat,' Bertie says.

Building confidence in your car allows you to react more assertively in a crisis.
Bertie's next lesson is the emergency lane change, cutting between two lanes to avoid an obstacle or another car that has stopped suddenly.

He says I should ignore any thought of braking, but instead concentrate on a sharp flick of the wheel, right then left, to steer through cones and swerve safely around an imaginary obstruction.

On my first attempt, the cones go flying. But after some practice, the car is sliding safely between cones just six paces apart at speeds of more than 40 mph.

In real life, such a move might help avoid a car stopped by crooks hoping to stage an accident.

Business fraud soars by amazing 1,900 pc

BUSINESS fraud in Yorkshire and the North-East has rocketed by a staggering 1,900 per cent over last year, depriving businesses and individuals of almost £100m.
Research by audit, accounting and business services firm BDO Stoy Hayward's revealed fraud rising to £95m in the last six months of 2009 compared to £5m for the same period in 2008.
In nearly three quarters of cases, greed and the need for a lavish lifestyle were stated as the reasons for the fraudsters committing the crimes.
The region's financial and insurance sector accounted for the highest proportion of all cases. In terms of money lost, the real estate sector was hardest hit.

Types of fraud vary. Procurement fraud is typically found in an organisation's purchasing operation with a fraudulent employee perhaps working with an outside accomplice to defraud the employer through bogus or inflated invoices for goods and services.

Large-scale frauds often taken place in relation to sizeable purchases of information technology or other fixed assets.

It can also include the corruption of management with purchasing authority by suppliers to encourage orders being placed with a particular business. The general public were also victims of fraudsters – to the tune of £3.5m with a number of people being swindled out of their life savings.

Simon Bevan, the Leeds-based head of BDO Stoy Hayward's national fraud team, said: "It comes as no surprise that fraud is rocketing but I predict we will see overall fraud in the UK hit £3 billion per annum. There is a whole wave of commercial lending fraud that is yet to be revealed by UK and overseas banks.

"It is frightening that the predicted level of £3 billion is only representative of those cases that reach the courts.

"In our experience many cases are never reported. The level of actual fraud is incalculable but is likely to be in the double digit billions."

Looking specifically at Yorkshire and the North-East, Mr Bevan said: "This region has a number of diverse industry sectors from financial powerhouses in Leeds to manufacturing plants in other major towns and cities. Past investment has seen growth in Yorkshire and the North-East and fraudsters will always be attracted to the smell of money."

He warned businesses to be on their guard.

"Recessions bring big problems for business leaders and fraudsters will do their best to take advantage of this.

"Firms should ensure that the issue of fraud is not forgotten – a large fraud can damage all the good work undertaken to survive the current economic climate."

Merseyside's credit-crunched businesses warned: Don't play with fire

Merseyside police and fire chiefs are uniting in a bid to prevent arson-related insurance fraud and warn credit-crunched business people that it is NOT a way out trouble.

Merseyside Police Chief Constable Bernard Hogan-Howe and Merseyside Fire and Rescue Service Acting Chief Officer Michael Hagen are launching a specialist team to tackle arsons on commercial properties where the intention is to profit from false insurance claims.

The Flare team is one of the first of its kind in the country and is being run by dedicated officers from both services.

It has been set up to investigate and prevent arson-related insurance fraud in the light of the credit crunch and harder economic times.

Flare will investigate arsons at commercial properties where it is believed that suspects have purposefully set fire to their business to gain financially through fraudulent insurance claims.

The team will work closely with Merseyside businesses and the insurance sector to investigate and prevent this type of crime.

Flare will also work closely with neighbourhood police, the Force's anti-social behaviour Task Force and investigating officers from the fire service to achieve thorough and efficient investigations.

Mr Hogan-Howe said: "I understand that the economic downturn is having an adverse effect on many businesses but arson with the intent of gaining through false insurance claims is not a way out.

"By committing such a reckless act not only will you lose your business, but you could destroy your life and the lives of others.

"We are determined to ensure that people involved in this type of crime realise that they are 'playing with fire' and will be arrested and put before the courts.

"Our officers will investigate in great detail any arson where it is believed to be fraud related and you will be prosecuted."

Merseyside Fire and Rescue Service Acting Chief Officer Michael Hagen said: “We know that arson-related fraud often increases in times of recession which adds to the risk to our communities and firefighters as well as costing jobs.

"As a result of our close working relationship with the police and with the co-operation of the business community and insurance industry, we intend to deter anyone from committing arson fraud and vigorously pursue anyone suspected of such an act.”

KGM appoints fraud manager

KGM Motor Insurance is upping the fight against spurious insurance claims with the appointment of a fraud manager.

David Wells’ role at the specialist motor insurer involves both strategic and operational aspects, developing and overseeing “rigorous fraud and financial crime management processes” across the business.

Mr Wells is moving from Highway Insurance, where he has spent the past six years as special projects manager for fraud, with a particular remit to target organised fraud.

KGM’s Active Underwriter, Colin Hart, comments: “This is a key appointment for us, we are very pleased to have David on-board. He has exactly the skills and experience we are looking for in this role.”

Last month, the Insurance Fraud Bureau reported that insurers are winning the battle against “crash for cash” fraudsters.

The Bureau has been working jointly with Police forces across the UK to disrupt the actions of criminal gangs involved; it currently has 25 active joint Police operations spread across 13 Police forces.

Particular areas showing improvement include Luton, East London, Harrow and Walsall.

Other areas to have seen “crash for cash” levels stabilise include Birmingham, Uxbridge and London North-West.

The Bureau estimates that fraudulent insurance claims add approximately £40 to every annual premium paid by honest policy holders.

Policewoman made threats to former lover, court told

A LESBIAN policewoman allegedly waged a year-long campaign of harassment against her former lover and colleague.

Diane Reeves-Emery, 38, allegedly targeted her ex-partner, Charlotte Eccles, 23, with scores of abusive texts – and threatening to stab her.

The Derbyshire police officers are on trial for allegedly cheating an insurance firm after crashing their Renault Clio during a lovers' tiff.

But the scam only emerged two years later when the couple split and Reeves-Emery was accused of carrying out the hate campaign.

Stafford Crown Court heard Eccles was being interviewed by police about the harassment allegations when she revealed the alleged insurance fraud.

Later, interviewed under caution, she told how she began her relationship with Reeves-Emery while working as a special constable in Swadlincote.

Eccles said they met on New Year's Eve 2005. Within three months Eccles had split up with her boyfriend and the two women were living together.

Eccles claimed that after only a few weeks she realised Reeves-Emery had "psychological problems" and was taking anti-depressants and drinking "excessive" alcohol.

Eccles told police: "She would tell me to leave and try to push me out of the door. When we were in bed together she would push me out.

"I loved her to pieces. But she would change from somebody I fell in love with to somebody who was completely different and aggressive.

"It was my first gay relationship, it was new, and I had left everything behind."

Steven Redmond, prosecuting, said the crash happened on April 25, 2006, when the pair went for a drive to discuss their relationship problems.

The smash caused £6,000 damage to their Renault Clio.

It was Reeves-Emery, of Alexandra Road, Burton, who called the insurance company to report the accident and take responsibility for the crash.

The firm sent out a claim form and the car was repaired, but at the lower excess rate of £250 for which she qualified.

But the prosecution claims the pair lied to pay only the reduced excess, and that Eccles was in fact at the wheel of the car at the time of the crash.

Months after the incident the couple married in a civil ceremony, but Eccles said she felt threatened by the "control" her lover exercised over her.

Reeves-Emery's campaign of harassment allegedly began following their split and intensified after Eccles started a new relationship.

Eccles, of Blueberry Way, Woodville, told police: "I put CCTV signs up. My letterbox was sealed, I was scared she might try to set my house on fire."

Asked about the alleged fraud, Eccles told police she was "under the influence" of Reeves-Emery and felt she had to go along with it.

She added that her ex-partner said their careers would be destroyed if the scam emerged.

"I knew what she was like when she didn't get her own way. I was scared to tell somebody because she was violent towards me," she told police.

When Reeves-Emery was later interviewed about the claims she read out a prepared statement, accusing her ex-lover of "making mischief".

The pair both deny a charge of obtaining a financial advantage by deception.

Reeves-Emery faces another deception charge after allegedly giving false information to a second insurance firm within days of the smash.

The case continues.