Bradford continues to be a hotspot for staged car accidents by fraudsters trying to cheat insurance companies, according to new research.

Figures compiled by the Insurance Fraud Bureau (IFB) reveal Bradford, which was the worst area for crash-for-cash crime in the country in 2009, has this year seen the fifth most reports of criminal activity linked to staged accidents.

A spokesman for the IFB, which estimates fraudulent claims to cost the insurance industry about £350 million a year, said: “Typically, in crash-for-cash scams, fraudsters drive to busy road junctions and then perform unexpected, unnecessary and dangerous manoeuvres designed to cause innocent members of the public to crash into them.

“Claims are made to the innocent motorist’s insurer, often including several accounts of fictitious injuries from members of the criminal gang.

“There is evidence to show that the proceeds from this type of fraud are used to fund other forms of serious crime including drug trafficking and gun running.”

According to research from car insurance company LV=, staged car accidents are now at a record high, with more than one in every 20 motorists believing they have been a victim of a crash for cash scam in the past two years.

Ursula Coulibaly, head of financial crime operations at the company, said: “It’s worrying that criminals and corrupt motorists think it’s acceptable to try to manipulate innocent motorists in this way.

“Not only is this practice dangerous, it is also illegal and leads to higher insurance premiums for all drivers.

“We’d urge motorists to pay close attention to their surroundings in the event of an accident and ensure they document as much information as they can.

“Any suspicious behaviour, such as the perpetrator being quick to apportion blame, or demanding cash up front at the scene, should be reported to your insurer straight away.”

Anyone who wants to report insurance fraud can phone the IFB’s free and confidential Cheatline, on (0800) 3282550 or visit insurancefraudbureau.org/report.