By Anita Rice


Personal injury solicitors should be required to conduct enhanced due diligence on clients to prevent fraudulent insurance claims, the head of the Insurance Fraud Bureau (IFB) has told the Gazette - as she revealed that the bureau is stepping up its action against law firms.



Sue Jones said the IFB was considering lobbying for the introduction of identity checks on clients by solicitors in the personal injury sector, similar to those already in place for certain transactions and services under anti-money laundering regulations.



She said: 'Solicitors are acting for clients who are not who they say they are. It seems to me that solicitors should be required to identify their clients properly.'



The IFB is already investigating, in conjunction with law enforcement agencies, ten solicitors' firms and dozens of claims-handling companies for alleged insurance fraud.



Jones warned she was also looking at 'a number' of other law firms and claims handlers whose names would be passed on to law enforcement agencies if necessary. She said: 'We are seeing some firms being taken advantage of by unscrupulous claims management companies and fraudsters, but there is some evidence to suggest that individuals within law firms are complicit with some of these activities and these are the ones the IFB is particularly interested in.'



The IFB was set up by insurance companies 18 months ago to investigate fraudulent claims. It has identified fraud hotspots across the country and can measure the frequency with which individuals, firms and claims handlers are linked to fraudulent claims.



Jones said: 'We can see if a firm has more fraudulent claims than would be expected and there is an appetite to pursue that now.'



Law Society President Andrew Holroyd said most solicitors would be able to identify insurance fraud at an early stage, but added that the Society is keen to work with the IFB to ensure solicitors are not unwittingly dragged into fraud.