By KLTV Newsdesk –

Surge in identity theft fuels insurance scams as residents urged to stay vigilant

Dewsbury and Huddersfield have been identified among the top 20 worst locations in England for insurance policy fraud, following a sharp rise in identity theft across the country.

The Insurance Fraud Bureau (IFB) analysed more than two million insurance policies for the first time to uncover the areas most affected.

Bradford topped the national list, followed by other West Yorkshire towns such as Leeds, while Dewsbury ranked ninth and Huddersfield nineteenth.

Policy fraud occurs when insurance is taken out using stolen or falsified information.

Criminals often use personal details to obtain fraudulent policies that are later used to facilitate wider scams, leaving victims to deal with financial consequences and damage to their credit histories.

Below is the full list:

England’s top policy fraud hotspots

A breadth of towns and cities impacted

Jon Radford, Head of Intelligence, Investigations and Data Services at the IFB, warned residents across West Yorkshire to be on high alert: “Our analysis shows a breadth of towns and cities across England are impacted by policy fraud, so it’s vital that everyone stays alert for signs their personal information is being misused.

“While anyone can be targeted, insights suggest insurance fraudsters often steal details from those they believe are cheaper and easier to insure – including people over 60, or individuals seen as financially secure or low-risk.

“We’re working with insurers, police and industry watchdogs to tackle the issue and urge anyone who thinks their details have been used in an insurance scam to report it to our CheatLine.”

Identity theft cases have risen seven-fold since 2021

The IFB reports that stolen personal details used in insurance scams have increased more than seven times since 2021.

Anti-fraud organisation Cifas has also recorded a 25% rise in insurance fraud linked to identity theft and false applications.

Fraudsters are known to use stolen identities to facilitate scams such as:

• Ghost broking – where fake policies are sold using doctored certificates

• Crash-for-cash schemes involving staged motor claims

• Fraudulent finance arrangements used to steal vehicles

Victims can find themselves chased for debts on policies they never took out, with lasting damage to their credit scores that could affect mortgages, loans or card applications.

How to protect yourself

Authorities recommend simple steps to reduce the risk of identity fraud:

• Use strong and unique passwords

• Limit the sharing of personal details online

• Only purchase from legitimate retailers

• Install device updates and enable two-factor authentication

• Be cautious of phishing emails, suspicious links and unsolicited calls

“Even small misrepresentations can be fraud”

While organised crime groups are driving much of the activity, the IFB warns that opportunistic dishonesty is also contributing to the problem. A YouGov poll commissioned by the bureau found that 17% of people would consider lying on an insurance application to save money.

Mark Allen, Head of Fraud and Financial Crime at the Association of British Insurers (ABI), stressed the consequences: “Amidst an increase in identity theft – which is often aided by the use of generative AI – it’s essential that consumers remain vigilant to protect their personal information from policy fraudsters.

“The IFB’s findings underscore the evolving nature of this crime and its impact on victims when false insurance policies are taken out or fraudulent claims are made using their details.

“At the same time, it’s vital that customers are honest and accurate when applying for their own insurance. Even small misrepresentations or omissions in an application can constitute policy fraud, leading to potentially serious legal and financial consequences.

“By protecting yourself from fraudsters and ensuring your own actions are above board, you can help maintain a fair and secure insurance market for all.”

Police urge public to report suspicious activity

Detective Chief Inspector Nik Jethwa, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said: “Policy fraud is a growing threat that often flies under the radar, but its impact is anything but invisible. Whether it’s criminals using stolen identities to take out fake insurance policies or individuals deliberately misrepresenting their details to cut costs, the consequences can be serious and far-reaching.

“Fraudulent policies don’t just distort the insurance market -they’re often used to enable wider criminal activity, from ghost broking to crash for cash scams. That’s why we’re working closely with the Insurance Fraud Bureau and industry partners to identify hotspot areas and disrupt these networks.

“We urge the public to stay alert. If something doesn’t feel right whether it’s a suspicious policy offer or signs your personal details have been misused – report it to Action Fraud. A few minutes of caution could prevent months of financial loss and emotional distress.”

Report insurance fraud

Anyone who believes their identity has been used in an insurance scam can report it confidentially via the IFB’s CheatLine at 0800 422 0421 or online. Reports can also be made to Action Fraud, the UK’s national reporting centre for cybercrime.

With Dewsbury and Huddersfield now officially on the fraud risk map, experts are urging residents to act quickly if they suspect something is wrong — before the consequences spiral.