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Car Fraud on the up due to recession

The number of fraudulent claims that have been investigated and decteted has risen from 11 in 2007 to 19 in 2008.

It seems that within the recent recession the most common type of fraud is misrepresentation when obtaining car insurance. It seems that to save money many people are providing false information when taking out new car insurance.

Insurers and police are warning however, that there are more dangerous types of fraud people are willing do. vehicle arson and crash for cash schemes, whereby crime gangs stage crashes, making claims for personal injury and damage to the vehicles seem to be on a huge increase.

The scams are thought to cost insurance companies millions each year.

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February 13th 2009

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