Chapter Outline

1. It has been estimated that approximately two percent of reported thefts are of motorcycles.

2. National and international rings operate, particularly in cities near ports, to export vehicles.

3. Since the collapse of communism in eastern Europe, the theft of motor vehicles has skyrocketed.

4. The theft of airbags and the resale of stolen salvaged airbags is becoming epidemic.

1. Temporary theft. The term temporary theft is used not to imply that the crime is not serious but, rather, to distinguish joyriding from something more ominous.

2. Joyriding. Joyriders are most often teenagers – 15 to 19 years old – who steal a car simply to drive and then abandon it.

3. Professional Theft. The professional car thief is motivated by very high profits and generally low risk.

4. Fraud. These various types of crimes are generally committed by the owner or someone acting on behalf of the owner, and the underlying purpose is to profit at the expense of an insurance company.

1. Chop Shops. Very simply, a chop shop is a place where stolen vehicles are disassembled for resale of their parts.

2. Quick Strip. A vehicle is stolen and stripped mainly for valuable accessories such as seats, stereos, car phones, and tires.

3. Salvage Switch. To the criminal the value of a salvaged vehicle is far greater than its parts.

4. Export. Vehicles manufactured in the United States are extremely popular in other countries.

5. Fraud – in General. Fraudulent auto theft claims are not the only type of fraud to which the insurance industry is subjected, but it is a significant part.

1. False-Vehicle Schemes. This scam is particularly prevalent where insurance companies are lax or have ineffective programs to verify the existence of a vehicle before issuing an insurance policy.

2. False-Theft Schemes. The primary reasons why an owner would file a phony theft loss are generally either to avoid liability for some conduct that resulted from the use of the vehicle or to reduce or avoid some financial loss.

3. Inflated-Theft Loss Schemes. The fraud occurs when the insured makes a false claim concerning the physical or mechanical condition of the vehicle when it was stolen; actually causes some damage or removes some parts upon recovery of the vehicle but before it is inspected by the insurance company.

4. Defrauding the Owner and Insurer. There are times when the owner is not involved in the fraud and both the owner and the insurer become victims.

1. It is fairly accurate that more than 2,500 pieces of construction equipment and in excess of 4,700 pieces of lawn and farm equipment are stolen each year in the United States.

1. In actuality, it is difficult to convert this figure to numbers of vehicles because commercial vehicle theft statistics are part of the overall motor vehicle theft numbers.

1. Although not a separate crime in itself, cargo theft, in the United States, is estimated to account for as much as $25 billion in direct merchandise losses each year.

1. National Insurance Crime Bureau. The NICB is an information-gathering and dissemination body and a law enforcement assistance agency.

2. The NICB is organized into eight geographic areas with its headquarters in Palos Hills, Illinois, a Chicago suburb.

3. Canadian Insurance Crime Prevention Bureau. The Canadian Insurance Crime Prevention Bureau is to Canada what NICB is to the United States.

4. International Association of Auto Theft Investigators. Another resource available to the investigator is the International Association of Auto Theft Investigators.

5. State Organizations. Many states have organizations comprised of auto theft investigators who meet regularly to exchange intelligence information and learn new methods of combating the problem of theft and fraud.

6. National Crime Information Center. Through NCIC on-line inquiries can be made into the vehicle or license plate files to check on records for stolen vehicles, vehicles wanted in conjunction with felonies, stolen component parts, and stolen license plates.

7. Special Investigative Units. There are more than 800 SIU investigators employed in the insurance industry working fraud claims.

8. AAMVANET. This computerized communication network links state and provincial agencies on matters of highway usage and highway safety.

9. Government Agencies. Specifically, motor vehicle and driver’s license offices, insurance fraud investigative units, and fire and arson investigative units may provide valuable information or assistance.

10. Manufacturers. Manufacturers are one of the most important resources an investigator can cultivate and turn to for assistance, particularly as it relates to the content and location of numbers on vehicles or parts.

11. North American Export Committee. The North American Export Committee was established in 1995 to investigate ways in which the exporting of stolen vehicles could be slowed without impeding commerce at port facilities.

12. National Equipment Register. The scope of theft of heavy construction equipment has led manufacturers, dealers, and insurers to support the development of a national data base of stolen equipment and provide the services of law enforcement specialists in the recovery of stolen equipment.

1. Gray-Market Vehicles. When the US dollar is strong overseas, it becomes economically feasible for individuals to purchase motor vehicles in other countries and have them shipped to the United States for sale, resale, or personal use.

2. Attempts to Conceal the Identity of Vehicles. The methods used to change the identity of a motor vehicle discussed earlier in this chapter include doing a salvage switch and altering genuine or counterfeiting ownership documents.

3. Federal Safety Certification Label. All cars distributed in the United States since 1970 must have a federal safety certification label.

4. Federal Legislation. In an effort to reduce auto theft by easing the process of vehicle identification, Congress enacted the Motor Vehicle Theft Law Enforcement Act of 1984.

5. VIN Editing and Reconstruction. In any investigation, even where it appears that the VIN has not been altered or defaced, it is incumbent on the investigator to check the validity of the identifying numbers.

6. VIN Restoration. The restoration of manufacturers’ serial numbers altered or obliterated from metal is a process that can be performed by an investigator with the proper material at hand.

1. Inspection of Salvage. Before beginning the physical investigation of a vehicle fire scene, the investigator must understand that the crime scene examination includes both the vehicle and the area in which it was burned.

2. External Inspection. A thorough search should be made of the area for tire tread marks, footprints, cans, bottles, other containers, unusual residue or materials, old tires, matches, or any other item that may be related to the case.

3. Internal Inspection. The inspection starts where the fire apparently originated.

4. Inspection of the fuel system includes the gas tank, the gas lines, and the fuel pump.

5. Inspection of the Electrical System. A short circuit in the electric wiring is the most common excuse offered for automobile fires.

6. Inspection of the Motor, Radiator, and Parts Under and Near the Hood. The only possible place for an accidental fire to start at this location is around the fuel pump or carburetor and at the wiring.

7. Inspection of the Body. The body of the car is usually so badly burnt as to afford little evidence.