Call centre staff fueling fraudulent insurance claims, says CPP


Liverpool, Cardiff, Leeds and Glasgow among the worst areas for fraud

Mobile operator call centre staff are passing on their knowledge to help others commit fraudulent  mobile insurance claims, according to insurance firm CPP.

CPP head of claims and fraud strategy Raphael Lawson told Mobile News that statistics for insurance fraud are higher in areas where operator call centres exist.

He said staff working within these centres often pass information to friends and family, which is then used to help make fraudulent claims on their mobile phone.

The company runs insurance schemes with T-Mobile and a number of UK-based banks.

Lawson declined to single out specific network operators but said fraudulent hot spots include areas in and around Cardiff (T-Mobile, Orange); Leeds (O2),  and Glasgow (Three and O2).

The average rate of mobile phone insurance fraud across the UK is between eight and 10 per cent, according to Lawson.

He said: “If you have a network call centre in a location, the staff there acquire a lot of information about insurance and mobile networks. Because of that they have knowledge, and many of them are students, so they go home and share that information.

“It is not necessarily the staff themselves, but it is their friends and family, and then their friends and family, so you see high clusters in those areas.

“Rates of mobile phone insurance fraud are a combination of many elements; it is not just one thing, but it is a contributing factor for sure.”

Lawson highlighted the ‘hot spots’ are also typically based in some of the more deprived areas in the UK.

Liverpool, which is described by the Office of National Statistics as the UK’s most deprived city, provided the three postcodes with the highest likelihood of fraudulent claims.

The area with the highest proportion of fraudulent claims is in the Waterloo area of Liverpool, where claims through CPP are around 58 per cent more likely to be identified as fraudulent.

Another insurance fraud hotspot is east London, which contains two of the UK’s most deprived areas, the boroughs of Tower Hamlets and Hackney. Manchester is also considered a mobile phone insurance hot spot.

Lawson said: “Sometimes we have small isolated pockets of fraud that pop up, but generally it is always the same type of deprived areas of the UK.”