This award was sponsored by KBS 

Nominee: A&Gs Claims Investigation Unit and Network Risk Team (Intelligence) 
Investigating Agency: Auto & General Insurance Services & Quantumcorp Investigation 
 

L-R: Rusty Russell (International 1st Vice President, IAATI), Kate Byrne (Quantumcorp), Michael Mendez (A&G) and Jasmin Giles (A&G)

1. Overview of the Investigation: 

Operation Barreleye was conducted by Auto & General Insurance Services and was a groundbreaking investigation that uncovered multiple claims involving a major insurance fraud ring. This operation demonstrated exceptional fraud intelligence practices, investigative acumen, cross-industry collaboration, and innovative techniques in combating insurance fraud. 

2. Background and Context: 

In 2024, a series of suspicious insurance claims were flagged by Auto & General. The fraud syndicate represented a financial exposure of $2.7 million for A&G, 116 claims identified, with 102 claims deemed non-genuine, and 65 claims investigated with a resultant cost avoidance of $1.5 million. The Operation began following a fortnightly sprint that focused on fraud syndicates, revealing significant exposure and standout investigations. Operation Barreleye is identified as unknown and/or fictitious entities lodging claims with multiple similarities across multiple claims. These claims usually involve a merging scenario and the telephone number for policyholders and third parties are invalid. All parties claiming go to a Business of Interest (BOI). 

On 5 November 2024, our insured lodged a motor policy claim with Auto & General Services for an accident purportedly occurring on 5 October 2024. Our Client alleged a rear-end collision with another vehicle, driven by a known third-party person of interest, stating the client impacted the TP vehicle twice after they broke suddenly. The client further claimed they left their vehicle at TP’s business, which was listed as a "Business of Interest" (BOI) under "Operation Barreleye". 

The immediate red flags were significant: 
● The claim's direct link to "Operation Barreleye," an identified syndicate characterised by fictitious entities, similar merging scenarios, invalid contact details, and involvement of BOIs. 
● Concerns that the claimed event was staged. 

Given the intelligence surrounding "Operation Barreleye," Auto & General Services promptly initiated a comprehensive investigation, externalising key aspects to specialist partners to ensure a robust and objective outcome. 

3. Investigation Methodology and Techniques 

This investigation exemplifies best practices and innovative methodologies in combating vehicle crime, moving beyond traditional interview-based assessments to leverage cutting-edge forensic science. 

3.1 Application of Best Practice Investigation Techniques: 

● Intelligence-Led Approach: The initial identification of the claim's link to "Operation Barreleye" was crucial. Intelligence gathered on this syndicate, including a detailed "run sheet," immediately elevated the investigation's priority and scope, indicating a pattern of organised fraud rather than an isolated incident. 

● Externalised Interviews: Auto & General Services engaged Quantum Corp, an independent investigation firm, to conduct formal interviews with both the claimant and the third party. While the client was interviewed, attempts to interview the third party were unsuccessful, a common tactic in organised fraud to avoid scrutiny. ● Forensic Crash Investigation: A pivotal decision was to instruct an independent forensic crash investigator to reconstruct the accident and provide an expert report. This move proved instrumental in objectively disproving the claimant's narrative. 

3.2 Innovative Methodologies and Forensic Analysis: 

The forensic investigation employed several advanced techniques that were critical in exposing the fraudulent nature of the claim: 

● Seatbelt Pretensioner and Friction Mark Analysis: The forensic report meticulously detailed the absence of seatbelt pretensioner deployment and occupant loading friction marks on the insured vehicle's seatbelts. This directly contradicted the clients statement that they were wearing their seatbelt at the time of the alleged impact. The lack of these indicators strongly suggested either the vehicle's ignition was off, the impact forces were below the deployment threshold, or the seatbelt was not worn – all inconsistent with a genuine 70km/h collision. 
● Detailed Damage Profile Analysis: ○ The forensic expert determined that the damage areas on the insured vehicle were inconsistent with the claimed event. Specifically, the damage profile to the front of the insured vehicle was inconsistent with an impact at the claimed 70km/h, instead appearing consistent with a low-speed front impact of approximately 20km/h. ○ Furthermore, the insured vehicle displayed areas of unrelated damage (e.g., left-hand side wing, right-hand side front door) consistent with a lateral impact, not a frontal collision as claimed. This suggested pre-existing or intentionally added damage. 
● Diagnostic Trouble Code (DTC) Examination: A highly innovative aspect was the analysis of the vehicle's onboard computer data. Diagnostic Trouble Codes (DTCs) relating to 'Collision Prevention Assist' and 'Pedestrian Protection' were recorded at 0km/h. This irrefutably disproved the claimant's assertion of a high-speed collision, providing objective, irrefutable evidence of a staged event. 
● Odometer Discrepancy Analysis: The forensic examination revealed a critical 5-kilometre discrepancy between the odometer reading recorded in the DTCs (45,488km) and the instrument cluster reading (45,493km). This significant difference strongly supported the scenario that the claimed event occurred at a different location, and the insured vehicle was subsequently driven five kilometres after the alleged incident, likely to the BOI premises. 
● Third-Party Vehicle Scrutiny: The third-party vehicle's images were found to be taken at a panel shop, not the scene, and the vehicle itself was a Holden Commodore. The third party's instruction to our client to leave their vehicle at their business (a BOI) further solidified the suspicion of a staged event. 

4. Complexity of the Investigation 

This investigation presented several layers of complexity, typical of motor fraud syndicates: 
● Fabricated Narrative: The claimant maintained their fabricated story even after being confronted with forensic evidence, necessitating a robust and irrefutable evidence base to challenge their account. 
● Uncooperative Third Party: The inability to interview the alleged third party added a significant challenge, as their non-cooperation was a strong indicator of complicity in the staged event. 
● Disproving a Seemingly Simple Accident: While a rear-end collision might appear straightforward, disproving it required highly specialised forensic analysis to uncover the subtle yet definitive inconsistencies that pointed to fraud. 
● Link to Organised Crime: Connecting this individual claim to the broader "Operation Barreleye" syndicate elevated the complexity, requiring an understanding of patterns, modus operandi, and intelligence sharing to identify the true nature of the crime. The financial motivations of the claimant, including details of their vehicle financing and previous policy changes, also added to the intricate web of information. 

5. Co-operation and Involvement of Multiple Agencies 

The success of this investigation was a direct result of effective collaboration and the strategic involvement of multiple entities: 
● Auto & General Insurance Services (AGIS): As the primary insurer, AGIS initiated and managed the investigation, demonstrating a proactive stance against suspected fraud. 
● Quantum Corp: The engagement of Quantum Corp for independent interviews ensured an objective approach to gathering claimant statements and attempting to engage the third party. 
● Independent Forensic Crash Investigator: The expertise of the forensic investigator was paramount. Their objective, scientific analysis provided the irrefutable evidence needed to challenge the fraudulent claim, highlighting the critical role of specialised forensic services in auto crime investigations. 
● Intelligence: The existence and utilisation of intelligence from "Operation Barreleye" implies a broader network of law enforcement and anti-fraud units working to identify and disrupt motor fraud syndicates. This investigation directly benefited from and contributed to, that wider intelligence picture. 

6. Results and Impact 

The meticulous and multi-faceted investigation yielded significant results: 
● Claim Decline and Financial Saving: Based on the overwhelming forensic evidence, the claim was recommended for decline due to the claimant's failure to provide true and complete information. This prevented a fraudulent payout of $94,770.74, a substantial saving for the insurer and, by extension, policyholders. 
● Disruption of Fraud Syndicates: By identifying and disproving another staged incident linked to "Operation Barreleye," this investigation directly contributed to disrupting the activities of a fraud syndicate. Each successful decline weakens these operations and sends a clear message to perpetrators. 
● Deterrent Effect: The thoroughness of this investigation, particularly the use of advanced forensic techniques, serves as a powerful deterrent against future fraudulent claims, demonstrating that insurers are equipped and willing to pursue complex cases. 
● Validation of Investigative Practices: This case validates the importance of combining intelligence-led approaches with expert forensic analysis and inter-agency collaboration in the fight against sophisticated insurance fraud. 

7. Challenges Overcome 

The investigation successfully navigated several challenges: 
● Claimant's Persistence: Despite mounting evidence, the claimant initially adhered to their false narrative. This was overcome by presenting irrefutable, objective forensic data that left no room for doubt. 
● Third-Party Evasion: The third party's deliberate non-cooperation was circumvented by focusing on the forensic evidence from the insured vehicle and the intelligence linking the third party to a known BOI. 
● Technical Complexity: The need to interpret and apply highly technical forensic data (DTCs, seatbelt mechanics, damage profiles) was expertly managed by the specialist forensic investigator, translating complex findings into clear, actionable evidence. 

8. Why This Investigation Stands Out 

This investigation is a truly worthy candidate for the IAATI Investigation of the Year Award because it embodies all the judging criteria: 
● Innovative Methodologies: The exemplary use of seatbelt pretensioner analysis, DTC data extraction (0km/h impact speed), and odometer discrepancy analysis to definitively disprove a staged accident is at the forefront of modern motor fraud investigations. These techniques provided objective, scientific evidence that was impossible to refute. 
● Application of Best Practice: The systematic approach, from initial intelligence flagging to externalised interviews and the engagement of a forensic expert, demonstrates a commitment to the highest standards of investigation. 
● Complexity: The case moved beyond a simple fraudulent claim to expose a link with an organised fraud syndicate ("Operation Barreleye"), requiring a sophisticated understanding of criminal patterns and a multi-layered investigative response. 
● Co-operation and Multi-Agency Involvement: The seamless collaboration between Auto & General Services, Quantum Corp, and the independent forensic investigator, underpinned by crucial intelligence from broader anti-fraud efforts, highlights the power of a united front against insurance fraud. 

In conclusion, the "Operation Barreleye" investigation, led by A&Gs Claims Investigation Unit and Network Risk Team, stands out as an exceptional example of how innovative forensic science, applied with best practice techniques and multi-agency cooperation, can successfully combat complex organised fraud syndicates, delivering significant financial savings and contributing to the integrity of the insurance industry.