Urgent Advisory: Beware of Fraudulent Claims from Individuals Targeting Independent Garages

Urgent Advisory: Beware of Fraudulent Claims from Individuals Targeting Independent Garages

Dear IGA Members,

We are writing to inform you about a troubling trend many have previously encountered, which is now resurfacing, with recent reports from garage owners in the South East. Several opportunistic criminals are currently targeting independent garages, attempting to extort money through fraudulent claims of vehicle damage. This scheme is becoming increasingly common, and you and your staff must be aware of the tactics being used and take steps to protect your business.

The Scam: How It Works

Their tactics are simple but effective. They bring a vehicle into your garage for a routine service or minor repairs. Upon returning to collect the vehicle, the individuals involved suddenly “discover” new damage to their car. They then aggressively accuse your garage of causing this damage and demand immediate compensation, often insisting on cash payments.

The perpetrators are highly manipulative and can become intimidating. They may threaten to escalate the situation, involving legal action, or in some cases, imply that they will take matters into their own hands. Their ultimate goal is to pressure your staff into handing over money on the spot to avoid further confrontation.

Safeguarding Your Garage: Essential Tips

While this scam can be alarming, there are steps you can take to safeguard your business. Although there may not be a way to eliminate all risks completely, the IGA is sharing a few strategies that may help reduce your exposure:

Document Vehicle Condition Thoroughly: Before starting any service or repair work, conduct a detailed inspection of the vehicle. Take high-quality photographs or videos of the car from multiple angles, ensuring that any pre-existing damage is clearly documented using something like the Used Vehicle Pre-Sales Inspection Form Pad and have the customer sign off on this inspection report.
Implement Clear Communication Protocols: Ensure that your team communicates transparently with customers about the condition of their vehicle before any work begins. This includes discussing and recording any existing damage. Providing a copy of the inspection report to the customer can also be beneficial.
Educate Your Staff: Make sure that all employees are aware of this scam and know how to handle such situations. Training your team to remain calm and professional under pressure can prevent a situation from escalating. Remind them to refer any threats or demands for immediate payment to a senior manager or owner.
Install Visible Security Measures: Cameras positioned to cover your service area and customer waiting areas can act as both a deterrent and a source of evidence if a dispute arises. Make sure customers are aware that your premises are under surveillance.
Know Your Legal Rights: It is important to understand that you are under no legal obligation to make any payment on the spot, especially if the claim is dubious. If you find yourself being threatened, it is advisable to contact the police immediately.

What to Do If You Are Targeted

If your garage falls victim to this scam or if you suspect that someone is attempting it, take the following steps:

Stay Calm: Do not engage in heated arguments or give in to demands for immediate payment.
Document the Interaction: Record as much detail as possible about the individuals involved, including their behaviour, threats made, and the vehicle in question.
Contact the Authorities: Report the incident to the local police, especially if threats or aggressive behaviour are involved.
Reach Out to your IGA Team: We are here to support you. Contact us immediately on 01788 225 908 for legal advice and assistance in handling the situation.

Conclusion

We urge all IGA members to remain vigilant and take the necessary precautions to protect their businesses from this re-emerging threat. By being proactive, you can minimise the risk of falling victim to these fraudulent claims and ensure the continued safety and security of your garage.

Should you have any questions or require further advice, please do not hesitate to contact the IGA. We are here to help you navigate this challenging issue.

Stay safe and vigilant.

Sincerely,

IGA Membership Team