Insurance fraud on the rise

Insurance fraud is on the rise. The Telegraph reports a 70% increase in false claims in the last three years, costing British insurers £260 million in the last year alone as people struggle to cope with the current credit crisis.

The police report incidents of car crashes being staged to help people struggling with debt put in fraudulent claims to raise funds to ease their financial plight.

Of course predictably enough it doesn't actually cost the insurance companies £260 million, instead it adds an average of £40 to the premium of the average motorist. Bet you didn't see that coming.