Auto Insurance Fraud in Mexico

By: Shakeel Mustafa

It used to be that Americans loved their cars. But tough economic times have put a strain on the relationship cash-strapped drivers now have with their vehicles. Take, for example, the South Carolina man who earlier this year filed an insurance claim, saying his 2002 Ford F-150 was stolen. Police quickly discovered it only miles from his house, engulfed in flames. Investigators couldn't find any signs of forced entry, but what they did discover was that the owner was behind on his payments, had refinanced the truck twice and had lied about it when asked. In a similar incident, a California woman, who was no longer willing to fuel up her 2002 GMC Yukon said it disappeared from the parking lot. Actually, she had arranged to have it chopped up in Mexico and sold off in parts. And then there's the Arizona man, who couldn't afford the payments on his 2006 Dodge Charger who told his daughter's boyfriend that he would give them his blessing to marry, if the boyfriend would only torch his car for the insurance money.

These cases are a handful in a growing pool of what are referred to as "owner give-ups," says Frank Scafidi, a spokesman for the National Insurance Crime Bureau. Whether it's torching, drowning or handing cars over to chop shops, more owners are looking for ways to unload their vehicles, then filing insurance claims saying they've been stolen. According to NICB, such give-ups are up 24 percent in 2009, compared to 2008. Claims related to suspicious vehicle fires and arsons--the most common way to get rid of a vehicle--are up 27 percent for the same period.

About the author:

Shakeel Mustafa lives and works in San Francisco, California. He has in-depth knowledge of preventing auto-Insurance frauds. Shakeel Mustafa was raised in South Africa. During the decade of conflicts he saw the rise of Nelson Mandela, guiding the black majority to freedom. He moved to San Francisco after completing his Bachelor's Degree in Finance from Washington State University, Seattle, Washington and started to work for the State Farm Insurance Company as a Claim adjuster. His primary role was to provide competitive auto insurance quotes to the new State Farm Insurance customers. His expertise was focused on investigating the claims submitted for insurance fraud.