With the holiday season upon us, malls are teeming with busy shoppers, all battling for that perfect gift. Crooks and con artists are also busy, too – looking for ways to make a quick buck and rip off you and your auto insurance company.
Insurance fraud is the second most costly white-collar crime in the country behind tax evasion, costing Americans billions of dollars each year. But you might be surprised to learn that the insurance industry doesn’t necessarily see an uptick in fraudulent efforts during the holidays, according to the National Insurance Crime Bureau.
Insurance cheats can range from strangers to your neighbors to dishonest body shop operators. Industry studies show that 10 percent or more of property/casualty insurance claims are fraudulent.
“Fraud is like life,” says Frank Scafidi, public affairs director for the Illinois-based National Insurance Crime Bureau. “It happens all the time. No one can say with a certainty that the holidays drive insurance fraud up one way or the other. The holidays don’t turn people into overnight felons. It’s just another day at the shop for thugs. If they have larceny in their heart, they’ll do it.”
Protect yourself from holiday thieves and fraudsters
But insurance thieves aren’t exactly taking a break during the holidays either. There is one holiday that continues to be the busiest for thieves — New Year’s Day. It was once again the leading holiday for reported vehicle thefts in 2010, according to an NICB study. Christmas Day had the fewest reported vehicle thefts.
Scafidi says there is no science behind why more cars are stolen on New Year’s Day, as opposed to other holidays that experts compared for the study. Many stolen cars end up on the black market.
“It could be that people are getting plastered and forget where they leave their car or they park it in an area more vulnerable to whoever sees it,” he says. “Or, people leave their keys in the car. It’s the same for any day. Take precautions. It’s as simple as that. Lots of vehicles are stolen or damaged because we make it easy for criminals.”
Scafidi also advises people not to leave things that look attractive to someone who doesn’t want to steal the car, but just want to get inside to take whatever is on the seats, such as an iPod or gifts.
Scafidi says it’s also common for thieves to case parking lots at this time of the year, looking for things easy to steal. And even if they don’t steal your car, it can be a hassle if they damage your car.
“Do things to make your vehicle less attractive to someone who has theft on their mind,” he says. “It’s a sad commentary, but that’s the way it is. Put those packages in your trunk.”
If you suspect insurance fraud or theft, experts say don’t hesitate to speak up. Call the National Insurance Crime Bureau at 1-800-835-6422.
Your call can be anonymous and you could be eligible for a reward.
