What is causing all these torched cars in the Las Vegas Desert? Why are cars being found burned along remote New Jersey roadsides? Why are they being driven into canals in California? Dumped into the Great Lakes? The answer is Insurance Fraud!
The Wall Street Journal ran a very interesting story this week titled, Signs of Stress, Fraud on the Roadside. The article explains how automobile ownership is hitting tough times and instead of making payments or returning the automobile, people ditch the vehicle. They then report it stolen and collect the insurance money to pay off the loan without hurting their credit. I find it interesting that people are willing to commit insurance fraud in order to not harm their credit. It is amazing what people will do when they feel trapped.
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You said it perfectly: "I find it interesting that people are willing to commit insurance fraud in order to not harm their credit. It is amazing what people will do when they feel trapped."
I think that is exactly it - people are feeling backed into a corner. A damaged credit rating is more of a *reality* to them as a consequence of their actions than the possibility of being uncovered for insurance fraud, therefore it seems a more viable option. It's scary but reality I guess in these uncertain times.
Posted by: Adrienne | March 27, 2009 at 02:37 PM
Scott,
Very interesting post, but it seems in the current economic situation that alot of folks are facing they are looking for the quick fix.... and hope they do not get caught.
It really comes down to the level of personal ethics that one has. As the old saying goes, "Ethics is doing the right thing, when no one is looking."
Posted by: Chuck Manganiello | March 27, 2009 at 04:04 PM