The swoop-and-squat scam

In a swoop-and-squat scam, one car cuts sharply in front of a second car, whose driver slams on the brakes so that you, following behind, rear-end it. The cutting car disappears, the braking car's occupants claim injuries, and your liability insurer is asked to pay. Your best defenses are a long following distance, a police report, careful documentation of everyone in the other car and dashcam video.

How the scam unfolds

The National Insurance Crime Bureau (NICB) describes the basic version as involving three vehicles, two driven by criminals:

1. The squat car pulls in front of you and settles into your lane.
2. The swoop car cuts in front of the squat car.
3. The squat car brakes hard, giving you little time to react.
4. You rear-end the squat car. The swoop car speeds off and is not seen again.
5. The claims begin. The squat car's driver and passengers claim injuries and vehicle damage against your policy, often with treatment from clinics that work with the ring.

NICB calls the freeway version the most dangerous. It typically involves four vehicles, three belonging to the criminals: a third car boxes you in so you cannot change lanes to avoid the squat car.

Why scammers choose rear-end crashes

When one car runs into the back of another, the driver behind is usually found mostly or entirely at fault, because drivers are expected to leave enough room to stop. That makes a rear-end crash a reliable way to pin liability on an innocent driver. In states that use comparative negligence, a sudden, unnecessary stop by the car ahead can shift some fault onto that driver, but only if you can show it happened. how fault is determined in a car accident explains how insurers and courts assign blame.

Who gets targeted

The Texas Department of Insurance says popular targets are vehicles perceived to be fully insured, luxury cars, female or elderly drivers and single-occupant vehicles. The common thread is a driver who looks well insured and is alone, with no passengers to contradict the scammers' account.

How to drive defensively

You cannot control what other drivers do, but you can make yourself a poor target:

• Leave a generous gap. The Coalition Against Insurance Fraud's first tip is never to tailgate. Extra space gives you time to stop when the car ahead brakes for no reason.
• Watch two cars ahead, not just the bumper in front of you. A car darting across lanes toward the vehicle ahead of you is the warning.
• Be wary of cars that change lanes to sit in front of you and then slow down, especially in heavy traffic or near highway ramps.
• Keep an escape route. Avoid being boxed in on both sides when you can.
• Run a dashcam. Video showing the swoop car and the sudden stop is strong evidence; see dash cams and car insurance.
• Avoid distractions. Scammers count on a moment when you look away.

If it happens to you

1. Stop, check for injuries and call the police. Insist on a police report even if the damage looks minor.
2. Describe the swoop car to the officer as precisely as you can: color, make, plate fragment, direction of travel.
3. Count and identify the occupants of the squat car. Note where each sat and how they behaved before and after police arrived.
4. Photograph everything: both vehicles, the damage, the plates, the scene and the people.
5. Look for witnesses and cameras. Independent witnesses, nearby businesses and traffic cameras can confirm the swoop car existed. Be cautious of a "witness" who appears instantly to support the other driver; NICB says these are often part of the scheme.
6. Do not accept help from strangers who offer a tow, a clinic or a lawyer at the scene.
7. Call your insurer the same day and say you suspect a staged crash. Give them your photos and video.

The after-accident checklist and information form keeps the details organized while you are shaken.

What happens to the claim

The other car's occupants will typically file injury and damage claims against your liability coverage. Your insurer, not you, decides whether to pay, and it has a duty to defend you if you are sued. When fraud is suspected, the claim usually goes to the insurer's special investigations unit, which can compare the claimants against prior claims, check medical billing and work with the NICB and law enforcement.

An example of how evidence changes the outcome

This scenario is hypothetical. You rear-end a car on a highway at moderate speed. Four occupants claim neck and back injuries and file claims totaling $60,000.

• Without evidence, the claim looks like an ordinary rear-end crash, and the insurer may settle injury claims while treating you as at fault.
• With a dashcam clip showing a third car cutting in and the squat car braking with nothing ahead of it, plus a police report and photos of four occupants walking normally, your insurer has grounds to dispute the claims and refer them for investigation. The at-fault label on your record may also be contested.

Reporting and penalties

Report a suspected swoop and squat to your insurer, the NICB (800-835-6422) and your state's insurance fraud bureau; how to report insurance fraud has details. Participants face serious charges: Florida law makes knowingly taking part in an intentional crash a second-degree felony with a minimum two-year prison sentence, and California treats it as a felony punishable by up to five years. The wider family of schemes is covered in staged car accident scams, and scams that follow a crash in scams that target drivers after an accident.

Key takeaways

• A swoop and squat uses one car to cut in and another to brake suddenly so you rear-end it; a freeway version adds a car to box you in.
• Scammers choose rear-end crashes because the following driver is usually blamed.
• A long following distance, attention two cars ahead and a dashcam are your best prevention.
• At the scene, call the police, describe the swoop car, document every occupant and refuse referrals from strangers.
• Tell your insurer you suspect fraud so it can investigate before paying claims.