A new phone service is encouraging Australians to report suspected insurance fraud.

The Insurance Fraud Hotline, set up by a Sydney-based investigations company, provides an online hub to report fraud information. People can upload pictures, videos and scanned documents. It is secure and users can remain anonymous. Authorised representatives from insurance companies will have free access to the tip-offs for their own investigations.

Anthony Callaghan, who set up the service, says insurance fraud is not a victimless crime. “Honest Australian policyholders are contributing about $100 each to compensate for dishonest claims,” he said.

Mr Callaghan believes the service will pay for itself.

“If we receive only three genuine tip-offs per week, for example, about the disposal of cars worth $40,000 each, that could save policyholders paying out a staggering $6 million each year.”