The £200m racket of gangs who stage road accidents and claim insurance

It involves criminals deliberately staging road accidents, usually by slamming on their brakes so an innocent driver behind has no chance of avoiding a collision.

The fraudster then claims against the other driver's insurance company for damage and injuries such as whiplash.

Police have warned drivers to be vigilant as the practice - often part of a well-organised criminal network - spreads at an alarming rate and puts lives at risk. 

Lethal: Criminals are making money from the 'cash for crash' scam (file picture)

Experts say it is costing the insurance industry at least £200million a year.

Two high-profile operations, involving both police and investigators from the Insurance Fraud Bureau, recently smashed criminal gangs in London, Hertfordshire and Bedfordshire.

In one case assets worth more than £1million were seized, three ringleaders were jailed for up to two and half years and nine others were given suspended sentences.

Overall, motor insurance fraud now costs an estimated £1.6billion a year. The extra premiums needded to pay for it add £50 to the average driver's policy.

Some of the fake crashes involve cars which are both driven by member of the gang.

But unconnected motorists are being offered a cut of the proceeds to take part.

A Metropolitan Police spokesman said: 'These otherwise law-abiding citizens are promised money and told there is little or no risk of police action.'

In another twist on the scam, one gang included the boss of a breakdown-company which made fraudulent-claims for towing vehicles from non-existent collisions.

Such is the concern that police have launched a crackdown against the fraudsters, targeting the criminal brains behind the plots as well as the accomplices.

In July the Metropolitan Police arrested 20 people in raids on homes in Ealing, Hounslow, Hillingdon, Harrow, Bromley and Croydon.

But they warned that this could be just the tip of a wider 'criminal network' and that more arrests are likely.

Superintendent Glyn Jones of the Met said: 'Some people see this as a victimless crime but it certainly isn't. Criminal activity like this pushes up everyone's premiums.'