Birmingham motor insurance fraudsters most prolific in UK

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Birmingham motor insurance fraudsters worst in UK

Birmingham's unwanted status as the UK's biggest hotspot for motor insurance fraud has been confirmed for the fourth year running, with fraudsters in the city accounting for 7.76% of all suspect motor insurances claimants in the UK last year.

The data compiled by specialist law firm Keoghs also shows a startling increase in the spread of motor fraud since 2009.

The West-Midlands city was trailed by East London, Liverpool and Manchester in the top ten fraud hotspots.

Each year, Keoghs - a law firm specialising in investigating suspicious claims on behalf of insurance companies - has over 24,000 claimants suspected of submitting fraudulent forms referred to it by a host of the country's top insurers.

Aside from the top ten fraudulent regions, the study also shows where fraud is increasing the fastest.

Crewe had the highest annual increase in suspect claims at 260%, while others experiencing an upturn include Medway in Kent (145%) and Leicester (58%).

Speaking of the findings, James Heath, partner and director of Counter-Fraud Strategy at Keoghs, said: "This year's results continues a trend we have seen over the past few years; an on-going and alarming spread of fraudulent motor claims away from the more traditional hotspots we have historically seen across England and Wales. This has resulted in only relatively small areas of the UK being left unscathed by the problem of fraudulent insurance claims."

Common frauds include staged accidents and exaggerated losses in claims. Insurance fraud affects insurance premiums nationwide, with many motorists receiving year on year increases to their renewal price.

Birmingham council state they have "a robust policy to minimise occurrences of fraud and ensure that resources are used appropriately" and "places emphasis on a layered approach which is designed to prevent, detect and deter fraud."