A total of 433 insurance fraudsters have been convicted since the City of London Police’s Insurance Fraud Enforcement Department (IFED) came to life in 2012.
Turning seven this month, the specialist police unit said these convictions led to 239 years in custodial sentences and over £100,000 in fines, as well as 108 years in suspended sentences and more than 13,000 hours in community orders.
Jointly funded by the Association of British Insurers (ABI) and the Corporation of Lloyd’s, IFED works in collaboration with insurers, the Insurance Fraud Bureau, and multiple law enforcement agencies.
“Since its formation, the Insurance Fraud Enforcement Department has evolved to tackle ever more ingenious insurance scams, including ghost broking, and staged motor accidents, as well as developing public awareness campaigns to help consumers avoid the fraudsters,” said ABI director of general insurance policy James Dalton.
“Its work highlights how seriously the industry takes preventing and enforcing against insurance fraud, to protect the interests of honest insurance customers.”
Earlier this month, IFED saw the sentencing of the ring leader and 15 members of an organised crime group responsible for a crash-for-cash scam, as well as of a man who used the personal details of his friends to make a series of fraudulent motor insurance claims.
“The Insurance Fraud Enforcement Department continues to evolve to counter the ever-changing threat posed by insurance fraudsters, and has achieved some terrific results since it began,” noted Detective Chief Inspector Craig Mullish, acting head of IFED.
“These figures are a testament to all of the hard work over the past seven years by IFED, in partnership with law enforcement and the insurance industry, which has contributed to bringing serious consequences to those who choose to engage in insurance fraud.”
Meanwhile Ryan Smith, corporation financial crime manager at Lloyd’s, believes the specialist police unit is carrying out crucial work to tackle insurance fraud.
“Insurance is based on trust – that we will pay valid claims when policyholders need us to,” he commented. “Fraud undermines this trust, so it is vital we stamp it out.
“IFED’s seven-year track record is evidence of its success in this regard and we look forward to continuing our support for our colleagues there so they can keep prosecuting these illegal activities.”