Staged Auto Crashes: A Growing Insurance Fraud Issue

Staged auto crashes, such as 'Swoop and Squat' and 'Drive Downs', are prevalent forms of insurance fraud, particularly in Southern California. A viral TikTok video showcased an incident in New York where a driver intentionally crashed into another person's vehicle, resulting in significant damages. Capt. Eric Hood of the California Department of Insurance reported that the state receives over 20,000 fraud reports annually, indicating a severe issue that can lead to dangerous situations on the roads. Hood highlighted notorious cases, including a staged crash in 1997 that led to tragic fatalities and the implementation of regulatory measures to combat such frauds. Various schemes are employed by fraudsters, including colluding to make false claims about accidents, thereby exploiting the insurance system.