GPs and vets help insurance fraudsters

Crime gangs are working with growing numbers of professionals such as doctors, lawyers and vets to commit insurance fraud, police warned today.

A senior officer said professionals were either being used unwittingly or were being recruited to work as insiders on insurance rackets.

The warning came as City of London police launched a specialist squad to take on gangs and individuals involved in insurance fraud, which is estimated to cost the economy £2 billion a year.

The squad will initially focus on motor insurance crime - in particular cash for crash scams - which makes up half of all insurance fraud.

Commander Ian Dyson, the head of the City police's fraud squad, said a "threat assessment" of the scale of the problem had revealed how organised crime groups were using more professionals to commit fraud.

"We are not saying everyone is caught up in this. Often people are unaware they are being used by criminals and organised crime groups. For instance, a doctor might unwittingly sign off a bogus personal injury claim but there are others who are corrupt."

Police have evidence that crooked lawyers are involved in car crash scams while vets can be involved in bogus pet insurance claims. This fraud has rocketed fourfold recently.

Police say they have also identified a rise in the number of fraudsters posing as brokers. The new squad of 35 detectives will be funded by £9 million over three years from the Association of British Insurers. Fraud is estimated to add an extra £44 a year to each premium.