A staged crash is when criminals maneuver unsuspecting motorists into crashes in order to make
false insurance claims. The cars generally suffer little damage in relation to the large demand that is then fraudulently submitted. In 2011, a group of seven people in
North
North is one of the four compass points or cardinal directions. It is the opposite of south and is perpendicular to east and west. ''North'' is a noun, adjective, or adverb indicating direction or geography.
Etymology
The word ''no ...
and
South Carolina
)'' Animis opibusque parati'' ( for, , Latin, Prepared in mind and resources, links=no)
, anthem = "Carolina";" South Carolina On My Mind"
, Former = Province of South Carolina
, seat = Columbia
, LargestCity = Charleston
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were arrested for allegedly stealing over $100,000 through staged crash schemes.
According to the
Coalition Against Insurance Fraud The Coalition Against Insurance Fraud is a coalition of insurance organizations, consumers, government agencies and legislative bodies working to enact anti-fraud legislation, educate the public, and provide anti-fraud advice.Brostoff, Steven. “Ne ...
, staged car crashes are a growing criminal problem.
Varieties of the scam
* The "Swoop and Squat" scheme involves two cars: one drives beside the victim, while the other ‘swoops’ in front of the victim car and stops suddenly, causing a
rear-end collision
A rear-end collision (often called simply rear-end or in the UK a shunt) occurs when a vehicle crashes into the one in front of it. Common factors contributing to rear-end collisions include driver inattention or distraction, tailgating, pani ...
. The first car is usually full of accomplices who will claim that they were injured even if it was only a low-speed collision, submitting fraudulent claims to the insurance company. The swoop car is usually driven by an experienced ring member, while the “squat” car is generally full of either accomplices, or victims. In the 1990s, poor
Hispanic immigrants were recruited to drive the swoop cars: a high-risk job that nobody wanted, but for which the immigrants could be paid only $100. One such driver, Jose Luis Lopez Perez, died after a swoop and squat crash, leading to an investigation which revealed the extent of this fraud.
* The "Panic Stop" requires two merging traffic lanes. As one driver signals to merge into the next lane, he is waved forward by another driver who proceeds to crash into the unsuspecting driver, later claiming they never realized the person was going to merge lanes.
* The "Sideswipe" involves a victim car who drifts into the adjacent lane while making a turn. The perpetrator of this fraud rushes to crash into the car that just drifted into his/her lane. Claiming innocence, the perpetrator then submits a claim to their insurer.
* "Shady Helpers" is a form of