Cold call scammers get vehicle accident information and sell to lawyers

INTERNATIONAL scammers are impersonating government officials and illicitly obtaining car crash records in a move that’s likely to have a direct impact on Queensland drivers’ hip pockets.

Cases of “claim farming” are on the rise. Picture: ThinkStock

COVERT international cold calling syndicates are impersonating government officials and illicitly obtaining the vehicle accident records of Queenslanders so they can sell prospective litigation cases to lawyers.

Authorities believe the dubious practice known as “claim farming” is behind a sudden spike in compulsory third party insurance claims despite a decline in crashes.

There are fears the practice will lead to a surge in unnecessary, exaggerated and fraudulent claims against the CTP scheme which will drive up the premiums paid on vehicle registration.

In correspondence obtained by The Courier-Mail Insurance Commissioner Neil Singleton warned the predominantly UK-based claim-farming firms were masquerading as Motor Accident Insurance Commission representatives to entice accident victims to take legal action.

“Members of the public have contacted MAIC reporting that the claim farmers indicate they are from MAIC or acting on behalf of MAIC or other government agencies,” Mr Singleton wrote.

In some cases, minor accident victims have been cold called when no police, ambulance, towing service or hospital administration was required.

“A number of recent calls to the MAIC enquiry line suggest that perhaps accident information is being obtained from the records of comprehensive motor insurers,” Mr Singleton wrote.

Claim numbers through the CTP scheme jumped from between 6081 and 6447 over the previous five years to 6879 in 2015.

Richard Douglas QC, who was engaged by MAIC to investigate the issue, found claim farming was occurring in Queensland.

Treasurer Curtis Pitt said the matter was being investigated and the Government would consider what action to take based on the Insurance Commissioner’s advice.

“However, it is concerning if breaches of privacy have occurred,” he said.