NCJ Number
101539
Journal
FBI Law Enforcement Bulletin Volume: 55 Issue: 3 Dated: (March 1986) Pages: 16-21
Date Published
1986
Length
6 pages
Annotation
Based on a multiagency investigation conducted by the FBI, the U.S. Postal Service, and the New York City Police, this article describes a typical auto insurance fraud scheme and the critical role of the computer in detecting this type of fraud.
Abstract
The success of a multimillion dollar auto insurance scheme originally uncovered by the FBI in 1982 was attributed to the participants' control over every aspect of the process from obtaining the insurance through processing claims. Once insurance was in force on a car, a vandalism claim would be made to recoup the expense of setting up the automobile. This would be followed by a second claim, usually a collision with a parked car. The automobiles were towed to a specific body shop, also part of the scam, where the insurance adjuster could view the damage. Body shops with an inventory of high-priced wrecked cars used them as 'picture' cars for insurance companies. When these cars had seen too much action, they were reported stolen to insurers and chopped. Computer resources supplied by the U.S. Postal Service allowed investigators to organize data from insurance companies, brokers, and body shops and spot patterns that signaled fraud. A case history of a 1980 Lincoln used in the scheme is included. Charts.