The Insurance Fraud Bureau (IFB) is launching a drive to tackle the number of fraudulent claims made to providers in a wider bid to stop illegally obtained funds being put to more sinister use, it has been reported.

According to the organisation, the money obtained from crash-for-cash scams are linked to more serious crimes such as Islamic extremism and sent to countries such as Afghanistan, the Financial Times claims.

Sue Jones, the bureau's chief, said in an interview with the news provider that staged car crashes are one of the biggest problem facing the insurance industry, with some estimates putting their value at more than £200 million annually.

Ms Jones said: "This is not just a crime where greedy people are lining their own pockets and driving around in flash cars and buying nice houses. It's the more sinister uses to which the money is being put," she said.

She added the structure of the fraud is a lot more sophisticated than she had anticipated.

According to the IFB, bogus and inflated claims on car insurance policies add around five per cent to the premiums of law-abiding motorists.

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