A Costly and Dangerous Threat for Fleets

This post is part of a series sponsored by IAT Insurance Group.

Motor vehicle crashes cost employers $60 billion annually — some of which are not actually “accidents.”

Staged auto accidents — in which fraudulent actors deliberately orchestrate collisions with commercial vehicles to earn the claims payout — are a significant and growing concern for the commercial transportation industry. These scams are not only costly for fleet carriers but also dangerous for everyone on the road. Fraudulent claims from staged accidents can lead to increased insurance premiums, legal battles and damage to a company’s reputation.

Organized crime rings often orchestrate these scams, targeting commercial trucks due to their high insurance claim payouts. They typically involve multiple participants, including fake witnesses, corrupt medical providers and unethical attorneys who inflate injury claims.

Understanding the common types of staged accidents is crucial for fleet carriers and truck drivers to protect themselves.

Common types of staged auto accidents

Here are five common staged accidents carriers need to be aware of:

The swoop and squat – A vehicle quickly cuts in front of a truck and suddenly slams on the brakes, causing a rear-end collision. The scammer then claims severe injuries, leading to hefty insurance payouts.
The drive down – In this scenario, a fraudster waves a truck forward in a merging or parking lot situation and then intentionally collides with the truck, later denying they ever signaled.
The panic stop – Bad actors fill a vehicle with passengers, pull in front of a truck, and abruptly brake. The passengers all file exaggerated injury claims, increasing the cost of the fraudulent claim.
The sideswipe – Scammers take advantage of lane changes or tight spaces in intersections, ensuring a truck brushes against them. They later exaggerate damages and injuries.
The fake witness setup – A witness suddenly appears, claiming to have seen the accident and placing the blame on the truck driver. Often, these witnesses are accomplices in the scam.

How fleet carriers can protect themselves

Staged accidents can cause severe financial and operational disruptions for fleet carriers. Recognizing red flags and taking the following proactive measures is essential to mitigating risks.

1. Install cameras

Dash cameras and other recording devices provide irrefutable evidence of what actually happened in an accident. Some scammers will deliberately reverse into a truck (sometimes called a “swoop and squat”) to make it appear that the truck rear-ended them. Without a camera, proving innocence is difficult. Cameras expose these frauds by showing the sequence of events clearly. In most cases, video footage makes it obvious who was at fault, stopping fraudulent claims before they start.

2. Train drivers to spot the signs

Driver awareness is crucial in preventing staged accidents. Educating drivers about common scam tactics enables them to recognize red flags before an accident occurs. Some warning signs include:

Erratic or suspicious driving behavior
A vehicle with multiple passengers appearing ready to claim injuries
A bystander who conveniently appears to “witness” the accident and sides with the other driver
Situations where a truck gets deliberately wedged in, making movement difficult

Encourage drivers to trust their instincts. If something feels off, it likely is. Training programs should include real-life case studies and defensive driving techniques to help drivers mitigate risks.

3. Collect data at the scene

One of the hardest things for drivers to do after an accident is to remain calm and document everything. However, collecting data at the scene can make all the difference in disproving fraudulent claims. Key steps include:

Taking multiple photos of the scene, vehicles, license plates and surrounding conditions
Noting any suspicious behavior from the other driver or witnesses
Gathering witness statements from unbiased third parties
Documenting injuries (or lack thereof) with timestamped photos
Recording personal observations and details while they’re fresh

4. Work with law enforcement

If a driver suspects fraud, they should immediately notify the responding officer. Showing dashcam footage on-site can be a game-changer, as it provides indisputable evidence that can prevent false claims. Officers who recognize fraud can document it properly, strengthening the defense against a scam.

5. Communicate with your insurance company

Quick and clear communication with your insurance company is crucial. Fleet managers should provide all available evidence, including:

Dashcam footage
Driver statements
Witness information
Police reports

The sooner insurance companies receive this information, the faster they can begin investigating potential fraud, reducing claim costs and exposure to liability.

6. Document even minor incidents

Not every staged accident involves major damage. Sometimes scammers stage minor accidents, only to later claim severe injuries. A common scenario involves a minor rear-end collision where the other driver appears uninjured but later files a lawsuit claiming chronic back pain. The statute of limitations in many states is two years, meaning fraudulent claims can emerge long after the accident. Documenting even the smallest incidents ensures fleet carriers are prepared to counter false claims when they arise.

7. Follow proper accident reporting protocols

Fleet carriers must have a standardized accident reporting protocol that drivers follow after every incident. Best practices include:

Reporting all accidents immediately
Documenting everything thoroughly
Notifying insurance and legal teams about potential fraud
Retaining records and reports for the long term

If fraud is suspected, alerting insurance companies and investigators early allows for a more thorough investigation, potentially stopping fraudulent claims before they gain traction.

Awareness and defense driving

By leveraging technology, training drivers to recognize scams and maintaining thorough documentation, fleet operators can protect themselves against costly schemes. By staying vigilant and proactive, carriers will safeguard their business from the growing threat of staged accidents.

ASK A LOSS CONTROL REPRESENTATIVE

Have a question on how to mitigate risk? Email losscontroldirect@iatinsurance.com for a chance to see your question answered in a future blog.

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