Insurance fraud unit makes its first arrest in its first week

The Insurance Fraud Enforcement Department, run by the City of London Police and funded by the Association of British Insurers, opened for business last week and has already made its first arrest.

A man was arrested on suspicion of fraud by false representation after submitting a claim for £35,000 after alleging his BMW had been stolen.

The insurer-funded police fraud unit has been launched with a 34-strong team and will be reviewing a number of cases following referrals from the insurance industry at the end of 2011.

The Department will act on evidence of motor insurance, commercial and public liability fraud and fight back against the increasing number of small-time ‘opportunistic fraud’ cases as well as organised crime.

City of London Police Commander Ian Dyson, commented: “IFED is here to turn the tide against all those who break the law, dismantling far-reaching criminal networks and changing a culture that says it is ok to submit bogus insurance claims. There is much to be done and there is not a moment to lose.”

Nick Starling, the ABI’s director of general insurance, said: “Insurers are determined to protect honest customers by reducing insurance fraud. This police unit is an important initiative as insurers intensify their crackdown on insurance fraudsters.”

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