As costs across the UK continue to rise at an alarming rate, so too will incidences of fraud as people resort to extreme measures to make ends meet – potentially costing organisations dearly.
Motor finance providers are no exception and are already experiencing this trend in real-time, with a recent survey on the Insurance Post finding that 79 per cent of respondents had seen an increase in opportunistic fraud.
Chris Hallett, head of the Special Investigation Unit at Synectics Solutions, explained:
“With household costs such as energy, food and mortgage repayments spiralling, many people are struggling to meet their monthly vehicle finance repayments and are turning to uncharacteristically illegal means to get rid of the vehicle, such as staging accidents, thefts or arson to have the vehicle written off. In theory, the end goal is for their insurance provider to settle to outstanding motor finance and remove them of their monthly finance obligations.”
Opportunistic fraud presents a unique challenge for recoveries and collections teams who are tasked with salvaging lost monies. Unlike organised fraud, those perpetrating opportunistic fraud may perceive themselves as law-abiding citizens.
Chris continued: “As their behaviour will be notably different to organised criminals, fraud prevention technology alone may not be enough for motor finance providers to detect and confirm fraud.
“Of course, not every fraudulent claim is opportunistic. Our motor finance clients continue to face issues with organised crime, where perpetrators are fraudulently taking out vehicle finance with no intention of ever repaying it – essentially stealing the vehicle.
When fraud or criminal activity is suspected, specialist intelligence may be needed to help expedite the location of the purchaser or hirer and the vehicle in order to recoup the money owed or seize the vehicle.
Cost-effective intelligence packages from the Special Investigation Unit (SIU) at Synectics Solutions tap into a wealth of unique data assets that no other organisation can access – helping to speed up the identification process of fraudsters.
This includes syndicated cross-sector risk intelligence data from National SIRA – the largest database of its kind in the UK – which supplies unrivalled insight that can stop fraudsters in their tracks.
Chris added: “We are here to compliment your in-house resources and expertise, allowing you to draw on our pool of knowledge and experience as and when your business needs it. You will receive clear, concise and National Intelligence Model (NIM) compliant reports giving unique insight into an individual or company.”
If you are currently investigating cases where you suspect fraud or criminal activity, contact Chris Hallett at chris.hallett@synectics-solutions.com to learn more about the Special Investigation Unit (SIU) and how it could help you.