Senator Moody Targets Staged Crash Fraud With New Bill

Senator Ashley Moody (R-FL) introduced the Staged Accident Fraud Prevention Act today, a bill aimed squarely at organized fraud rings that stage auto collisions, fabricate injuries and cash in through the courts.

The Senate bill is the companion to H.R. 2662, sponsored in the House by Representatives Mike Collins (GA-10) and Brandon Gill (TX-26). Its backers say it would restore fairness to the legal system, protect businesses and consumers, and help stop the crime.

The stakes are financial as much as legal. Litigation expenses across the automobile sector cost the U.S. economy $58 billion in 2022 alone, according to a report from the U.S. Chamber of Commerce Institute for Legal Reform. The Chamber frames those dollars as money that could have created new jobs, strengthened supply chains or eased inflationary pressures.

"Staged accidents are a dangerous and costly crisis that is threatening public safety and household budgets across America. Senator Moody's leadership on the Staged Accident Fraud Prevention Act builds on the momentum to put a stop to these organized crime rings that specifically target trucking businesses," said Stephen Waguespack, President of the U.S. Chamber of Commerce Institute for Legal Reform.

A national playbook

The schemes follow a recognizable pattern, according to the Chamber. Fraud rings stage the crash, fabricate injuries, then team up with willing billboard lawyers, medical accomplices and litigation funders. From there they exploit loopholes in the legal system to turn a profit.

Florida illustrates the scale. In May, five suspects were arrested there in connection with an alleged staged crash scheme. The state recorded over 1,000 staged accidents in 2024.

The danger is not abstract. Innocent drivers face real risk on the road, and the costs ripple outward to consumers and businesses. For trucking companies in particular, staged collisions hit the bottom line hard — a central reason the industry and the Chamber's legal reform arm have thrown their weight behind the legislation.

With companion bills now in both chambers, the proposal heads into the legislative process with organized business support behind it.