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Consider this
scenario: You're stuck in heavy traffic on a busy highway.
Another car cuts off the driver in front of you, forcing him to slam
on the brakes. You try to stop, but there's no time … and you
rear-end the guy in front of you.
An everyday
accident? Not this time. Turns out you've been had by a
well-organized criminal ring that staged the entire thing. |
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This particular scam is
called the "swoop and squat." (The first car "swoops" in
while the second car "squats" in front of you.) After the
"accident," everyone in the car you rear-ended-usually crammed full
of passengers-will file bogus injury claims with your insurance
company. Each will complain of whiplash or other soft-tissue
injuries-things difficult for doctors to confirm. They may even go
to crooked physical therapists, chiropractors, lawyers, or auto
repair technicians to further exaggerate their claims.
We're talking
big money here. Staged accidents cost the insurance
industry about $20 billion a year. Those losses get passed on to all
of us in the form of higher insurance rates-an average of $100-$300
extra per car per year.
Here are some
similar scams to look out for:
- The drive down.
You're attempting to merge when another driver waves
you forward. Instead of letting you in, he slams into your car.
When the police arrive, he denies ever motioning to you.
- The sideswipe.
As you round a corner at a busy intersection with multiple turn
lanes, you drift slightly into the lane next to you. The car in
that lane steps on the gas and sideswipes you.
- The t-bone.
You're crossing an intersection when a car coming from a side
street accelerates and hits your car. When the police arrive,
the driver and several planted “witnesses” claim that you ran a
red light or stop sign.
How can you
protect yourself?
- If you're in an accident,
call the police immediately.
- Report accident claims to
your insurance company. Don't settle on site with cash.
- Be careful with your personal
information, mindful of identity theft.
- If you can, photograph the
car and passengers and write down names, addresses, and phone
numbers.
- Use medical, car repair, and
legal professionals you know and trust.
- Don't tail gate … drive
safely.
What are we
doing to protect you from these schemes? Plenty. Like
Operation Soft Tissue, where a Chicago agent posed as a corrupt
lawyer and caught hundreds of these con artists and crooks
red-handed. We've investigated more than 90 staged accident fraud
cases over the past decade. With more to come!
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