|
|
|
 | HEAT URGES CITIZENS TO TAKE A STAND AGAINST AUTO THEFT RELATED INSURANCE FRAUD IN 2000 Study Indicates Nearly One Out Of Three Citizens Know Someone Who Has Committed Fraud, But Few Report What They Know LIVONIA, MI (25 February 2000) – Coming off a banner year, the 15-year-old Help Eliminate Auto Thefts (HEAT®) Program is redoubling its efforts in 2000 to combat the expensive crime of auto theft related insurance fraud. Citing a nationwide study by the nonprofit Coalition Against Insurance Fraud -- indicating 31% know someone who has committed insurance fraud, but only 17% of those have reported the crime, HEAT® is urging Michigan’s citizens to reverse this trend by reporting auto theft related insurance fraud to its confidential tip-reward line, 1-800-242-HEAT. "Looking at the numbers, it was obvious we needed to improve public awareness of this damaging crime," explains Terri Miller, HEAT® Program director. "Auto theft related insurance fraud plagues Michigan, taking money out of everyone’s pocket by diverting critical resources from businesses, law enforcement and the civil justice system." While auto theft has been steadily decreasing in Michigan, finding auto theft related insurance fraud, before it gets into the claim process, is the biggest challenge facing the enforcement of this crime today. "Once it’s reported, there is a pretty good chance the crime will be prosecuted," says Miller. "But because insurance fraud often remains below the surface, more people need to step forward and report what they know to make an impact." In an effort to help Michigan’s citizens take action against auto theft related insurance fraud, HEAT® offers a list of Most Common Vehicle Theft Fraud Schemes (provided by the National Insurance Crime Bureau): "Owner Give-up" In this scheme, the vehicle owner orchestrates the destruction of the vehicle to collect insurance money. The "stolen" vehicle is often found burned in a secluded area, submerged in a lake, or in some extreme cases, buried underground. "30-Day Special" The 30-day special is often perpetrated by owners whose vehicles need extensive repairs. They will report the vehicle stolen and hide it for 30 days – just long enough for the insurance company to settle the claim. Once the claim is paid, the vehicle is often found abandoned. "Export Fraud" In this scheme, the insurance fraud perpetrator purchases or rents a vehicle, insures it and then ships it to an overseas conspirator. Once the conspirator sells the vehicle, the perpetrator reports it stolen. The insurance company covers the loss, while the fraud ring profits from the sale of the vehicle. "Phantom Vehicles" This scheme occurs when an individual creates a phony title or registration to secure insurance on a non-existent vehicle. The insured will later report the vehicle stolen before filing a fraudulent insurance claim. Often antique or luxury vehicles will be used, since the more valuable the vehicle, the larger the settlement. "Scapegoat Theft" Sometimes an individual will claim to be a vehicle theft victim to avoid criminal prosecution for another crime. For example, a vehicle owner who hit a parked car or telephone pole may abandon the vehicle and report it stolen to avoid paying for the damages. Concerned citizens who call the confidential HEAT® tip line are rewarded up to $1,000 if their tip leads to the arrest and prosecution of a suspected car thief or insurance fraud perpetrator, and up to $10,000 if the tip results in the arrest and binding over for trial of suspected theft ring members and/or chop shop operators. HEAT® also rewards $2,000 for information leading to the issuance of a warrant for a carjacking suspect. Since its inception in 1985, HEAT® has paid 1,397 qualified cash rewards to callers to the confidential, tip reward line, 1-800-242-HEAT. HEAT® also offers a program to Ameritech Cellular subscribers, where dialing *HEAT automatically connects the cellular user/caller to HEAT® law enforcement officials. HEAT®’s hotline is monitored by the Michigan State Police and funded by Michigan auto insurance companies. Since 1985, HEAT® has awarded $2,133,995 to tip callers. During that period, the HEAT® tip line has received 6,139 calls leading to the arrest of 2,311 suspects and the recovery of 2,815 vehicles valued at $31,919,801.
| |
| | Top | | | How Heat® Works | | | Law Enforcement | | | News & Clips | | | Safety Tips | | | Site Map | | | Interactive Quiz | |