Romance fraud: warning over scam that turns victims into insurance cheats

A new form of romance fraud involves scammers recruiting partners into insurance scams, according to the UK's Insurance Fraud Bureau (IFB). Instead of directly stealing money, fraudsters persuade victims to make false insurance claims, often related to staged car accidents, by either filing a bogus claim or falsely claiming to be a witness. Victims may be motivated by a romantic relationship with the scammer. While the immediate financial impact on the victim may seem minimal, they risk being placed on the insurance fraud register, which can negatively affect their credit score and ability to obtain future insurance. The IFB warns that victims may be hesitant to report these incidents due to shame or a lack of perceived financial harm, but complicity in these schemes constitutes fraud.

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