Transportation Fraud Alert
Scottsdale Insurance Company's Special Investigation Unit believes it has identified an organized crime ring targeting our transportation partners.
Swoop & Squat Ring
A swoop & squat typically involves two vehicles working together. The two vehicles position themselves in front of the target vehicle. They typically ensure that the target vehicle is on a section of highway which boxes the rig in, such as a K-Rail on one side and vehicles on the other. The lead car (swoop vehicle) hits the brakes hard "causing" the second vehicle (squat vehicle) to slam on their brakes. The size, speed, weight and close proximity of the second vehicle guarantees that the tractor will collide with it.
All three vehicles typically pull to the side of the freeway and then the first car flees the scene leaving the victim truck driver to believe it was an "accident" caused by the first vehicle.
The second vehicle is typically full with passengers that are all claiming whiplash type injuries. The driver (who orchestrated the entire collision) frequently calls 911 to request an ambulance and puts the blame on the first car that fled the scene. When the highway patrol arrives they generally cite the truck driver for following too close.
Within days a lawsuit is filed against the trucking company claiming severe injuries on all parties within the car. Swoop & squat rings can also involve corrupt lawyers and doctors. Many times the passengers were recruited for the collision and paid a small fee to participate.
Scottsdale Insurance has been the victim of four such collisions this year in
If it were not for the terrific photos the insured driver took at the scene, we might not have identified this organized crime ring. The investigation is currently ongoing and we will report the findings in the near future.
Drivers need to be aware of this scam. If there are two cars that appear to be traveling together, changing lanes together, and jockeying for position in front of your rig, the driver needs to start slowing down immediately, look for an escape route, pay attention to the lead car and perhaps get a license plate or tag number. If a driver is involved in a collision, he or she should photograph everything: up close, far away, all angles, identification, paperwork, and subjects involved.
If you hear of anything that sounds like a swoop & squat, notify your underwriter immediately so we can get involved early.
