Staged crashes and fake claims fuel a 2025 car insurance fraud epidemic

Car insurance fraud involving staged accidents has surged in 2025, with criminals exploiting simplified claim procedures. Scammers are using pre-damaged vehicles and fake collisions to extract illegal payouts from mandatory third-party liability policies. Progressive insurance companies are now calling for stricter controls to combat the growing problem.

Fraudsters have been transporting damaged cars to accident sites with tow trucks to stage crashes. By filing false claims through the europrotocol—a mobile app-based reporting system—they avoid proper scrutiny. This simplified process, designed for minor accidents, is now being abused to secure quick, fraudulent payouts.

The schemes are most active in regions with high auto insurance loss ratios, including Novosibirsk, Chelyabinsk, and Primorsky Krai. Unlike in 2024, when such cases were rare, 2025 has seen a noticeable spike in fraud linked to the europrotocol. Authorities note that no official statistics existed last year, as the europrotocol itself is not used in Russia, but the problem has since spread.

Insurance companies are now pushing for tougher anti-fraud measures. Proposed changes would allow insurers to summon at-fault drivers for vehicle inspections and request traffic or dashcam footage. They also want extended review periods for suspicious claims. Honest drivers, however, will face no changes to the europrotocol process for legitimate claims.

The proposed measures aim to close loopholes in the insurance system without disrupting genuine claims. Stricter checks on staged accidents and pre-damaged vehicles could reduce fraudulent payouts. Insurers stress that lawful policyholders will continue to benefit from the same simplified procedures for car insurance quotes.