Insurance Fraud Enforcement Department Why does insurance fraud matter ?

NOT PROTECTIVELY MARKED Scale of the problem NOT PROTECTIVELY MARKED

How broad is the problem ? 23% of customers in UK who had made a home or car claim in the last 2 years had overstated the value (Accenture, Claims Customer Survey) 22% of those surveyed in England and Wales said they would consider padding an insurance claim (Karstedt and Farrall, 2006) 11% of adults had committed insurance claims fraud in the previous 12 months (ABI Fraud Research Report, 2007) NOT PROTECTIVELY MARKED

Industry wide strategy NOT PROTECTIVELY MARKED

Less Police Investigation The Cycle The Cycle More Fraud Less Police Investigation No Deterrent

Why the City of London police

NOT PROTECTIVELY MARKED Achievements 2,000 people interviewed as suspects 1,300 investigations covering over £150 million of fraud losses 700 convictions and cautions NOT PROTECTIVELY MARKED

Recovering proceeds of crime NOT PROTECTIVELY MARKED Recovering proceeds of crime Fraudsters forced to sell their homes (Rattigan) Forfeit their pensions (Jeremy Jones) Serve extended term of imprisonment (Buckharee – 5 years) Marc Rattigan was an employee of a large insurer working in handling claims, he abused his position to add members of his family as passengers in genuine accidents and authorise payments in settlement for injury. Following conviction he was ordered to pay back all the money obtained, tens of thousands of pounds and was forced to sell his home to do so. Jeremy Jones, a soldier, and his then wife conspired to falsely claim their son was injured in a bike accident losing sight in one eye. They falsified surgeons reports to claim compensation from the insurer. After succeeding in this claim they went on to claim a backfiring car in a garage had left Mrs Jones with permanent deafness in one ear. When this claim was submitted to the same insurers they became suspicious and contacted the first surgeon who confirmed that the medical report was a forgery. They referred the case to IFED who proseucted both. On conviction an order was made by the court seizing Jeremy Jones military pension to repay the victims. Danyal Buckharee was the most prolific ghostbroker investigated by IFED to date, defrauding over 600 motorists with a professional website and outsourced legitimate call handling service. On conviction he was ordered to repay £750,000, with an extended term of imprisonment to be served if he could not make payment. He has failed to make payment and had 5 years added to his 7 year sentence. NOT PROTECTIVELY MARKED NOT PROTECTIVELY MARKED

Landmark Prosecutions NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED Who we deal with What we have learned NOT PROTECTIVELY MARKED

What we have learned Its not just insurance fraud Organised crime groups use insurance fraud to raise money for other activities Insurance is required to mask other criminality, including drugs and other commodity movements, anti social behaviour, burglary NOT PROTECTIVELY MARKED

In defence of data sharing NOT PROTECTIVELY MARKED

In defence of data sharing NOT PROTECTIVELY MARKED

In defence of data sharing NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED Looks plausible NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED The reality NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED Who is behind it ? 2006 Fraud 3 years imprisonment ordered to repay £83,000, plus a further 730 days in default, paid nothing back Oct 2012 20 months Imprisonment 8 counts of fraud benefit figure £131,830.79 Repaid £20,000 June 2013 3 years imprisonment 18 counts of Fraud benefit figure £490,270 repaid £511 only. NOT PROTECTIVELY MARKED

Customer is always right NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED Be suspicious NOT PROTECTIVELY MARKED

Do fraudsters get long enough sentences ? NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED Why does it matter ? “Insurance fraud is not victimless. It pushes up the cost of insurance for honest consumers; funds the wider activities of criminal gangs; and puts pressure on essential public services, such as the NHS and courts. Contrary to the perception of many of those who commit fraud, they are not stealing from a faceless corporation. The costs are paid by their friends, families and neighbours through higher insurance premiums. The value of detected fraud is in excess of £1 billion and undetected insurance fraud is estimated to cost the UK economy more than £2 billion a year. Furthermore the normalisation of fraudulent behaviour is socially corrosive and erodes trust.” Insurance Fraud Taskforce 2016 NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED Why does it matter ? NOT PROTECTIVELY MARKED

NOT PROTECTIVELY MARKED QUESTIONS? NOT PROTECTIVELY MARKED