- Dean Smith
Vehicle Theft Fraud Schemes
According to an article on Netquote.com, vehicle theft accounts for the greatest percentage of falsified insurance claims than any other form of theft. And we are not talking about someone stealing a car or motorcycle that does not belong to them, which is ultimately considered a felony. We are discussing situations where the owner of the vehicle commits fraud. Some vehicle fraud schemes include:
“Owner Give-ups”: The owner of the vehicle claims the car/motorcycle/truck/etc. has been stolen, but the owner finds a method to destroy the vehicle, either by demolishing/burning/etc. The vehicle is eventually found, mostly in isolated areas such as lakes and dense woodland.
“30-Day Specials”: In this scenario, the owner will report the vehicle stolen because of the need for a significant amount of repairs. The owner will hide it until the claim has been settled. Again, the vehicle is usually found dumped.
“Phantom Vehicles”: Someone will use a fraudulent title to acquire insurance on a car that does not exist, then report it stolen and file a claim to collect the settlement. The more extravagant the car, the higher the settlement. Watch out for classic and luxury cars!
“Export Fraud”: Individual acquires a car, loan, and insurance policy. The car gets reported stolen and then shipped overseas to be sold. This brings a double payout! The insurance company pays the owner, as well as an illegal transaction from selling overseas.
Contact ICU to start a special investigation today.