A Watford man was one of five people arrested yesterday as part of an ongoing major investigation into "cash for crash" fraud offences.

The investigation by the police's Serious and Organised Crime Group has focused on an organised criminal enterprise, which is believed to be staging motor vehicle collisions and conspiring to defraud insurance companies.

Five addresses in Hertfordshire, Bedfordshire and London were raided yesterday and five people have been arrested on suspicion of conspiracy to defraud insurance companies.

A 37-year-old Watford man was arrested along with a 29-year-old man from St Albans, a 36-year-old man from Hatfield, a 30-year-old man from Luton and a London man, 40.

The arrests are the second phase of a 14 month investigation, which has also involved investigators from the Insurance Fraud Bureau. Codenamed Operation Mysterious, a team of specialist detectives within Hertfordshire Constabulary began an investigation following information received from the insurance industry.

During phase one of Operation Mysterious (November 2006) nine people were arrested including drivers, a vehicle recovery agent and an insurance vehicle examiner. On the advice of the Crown Prosecution Service they have been charged with conspiracy to defraud insurance companies and currently await trial.

To date assets estimated to be in excess of £2 million have been identified.

The IFB runs a free and confidential helpline which members of the public are urged to call if they have any information on staged motor collisions or other types of insurance fraud. The number is 0800 328 2550.

The five people arrested are currently being questioned at police stations across the counties.