As Car Sales Fall, Insurance Fraud Increases

Automobile Staff
Car Fire

As the nation's economy crumbles and the job market falters, many drivers are finding it difficult to make their car payments, and are looking for a way out. Unfortunately, one popular way lies with insurance fraud: burning a car and then claiming that the car was stolen.

According to the National Insurance Crime Bureau, "potential owner give-ups," most of which involve burned cars, increased from 511 in 2004 to 986 in 2007. These numbers represent a "small percentage of the reality out there," according to Frank Scafidi, a spokesman for the anti-fraud group.

To distinguish fires set by car thieves and those set by people trying to scam the insurance companies, investigators use a variety of techniques. Two of the most telling clues are seen by looking at the finances and car payments of the vehicle's owner; the other involves what make and model was destroyed.

A high number of these cases can be traced back to the owner, due in part to their criminal naivete.; Most involved parties aren't professional crooks, but everyday people looking for a way out of a dire financial situation.


just because a client was falling behind on his payments does not mean that he tole his own car and burned it, there are actually honest people out there that wont do this. it can be a coincidence to so how can the fraud agency prosecute someone on just speculation?

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