Motoring scam warning
How to avoid being targeted by scammers after a car crash.
Queenslanders are warned to be aware of scammers posing as RACQ or other insurance companies.
RACQ Manager Counter Fraud and Investigations Glenn Rowe said unscrupulous accident management companies were paying online search engines to appear at the top of their rankings when drivers searched for their insurer’s details following a crash.
“Drivers are stressed and vulnerable after a crash, so when they click on the phone number on the ad, they assume they’re speaking to RACQ,” Mr Rowe said.
“In reality they’re speaking to someone in a contact centre overseas who then sells their information to an accident management company in Australia.
“The accident management company then obtains authorisation, or in some cases forges it, to manage the claim on the claimant’s behalf. The accident management company refers the claim to a lawyer to recover the costs from RACQ, which are usually inflated by about 70 percent. All the while the claimant thinks they’re dealing directly with RACQ.”
Mr Rowe said accident management scammers cost both the claimant and other Queenslanders.
“Not only is the consumer at risk, as they’ve received substandard repairs to their vehicle by dubious repairers, but they could also be liable to pay the inflated repair costs if they’re eventually found at fault,” he said.
“This is estimated to cost all consumers an extra $70 on average in insurance premiums.
“Scammers also add to the cost of CTP insurance which is paid by all Queensland motorists through vehicle registrations.”
RACQ’s Counter Fraud and Investigations team has worked with Google to change how ads from accident management companies appear.
“After consultation with RACQ, Google changed the formats of their ads to ensure it’s now obvious they are for accident management companies and not insurers,” Mr Rowe said.
He said members making an insurance claim should verify they are speaking to RACQ.
“Accident management scammers won’t say they’re from RACQ, but they will make it seem like they are,” he said.
“If you have any doubts, hang up the phone and double-check that you’re calling the correct number.”
Tips to avoid car crash scammers
- Make sure the website or phone number belongs to your insurer.
- Verify who you are speaking to when making a claim.
- Be careful about what personal information you provide.
- Ignore unsolicited calls or texts regarding a recent car crash.
- If it seems too good to be true, it probably is.
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The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
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Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.