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Staged wrecks part of nationwide trend to defraud auto insurance providers

Posted On Wed, May 19, 2010

Two automotive fraud rings under investigation in Oklahoma City are part of a growing number of insurance fraud cases.

According to the National Insurance Crime Bureau, the rings staged accidents to fraudulently collect on auto insurance claims, the Oklahoman reported. A staged wreck involves either people in the ring itself or the targeting of innocent victims, and has spread throughout the country in recent months. The NICB is currently investigating such rings in California, Florida and New York as well.

Those involved in the ring also tend to claim personal injury to increase the payout from car insurance companies, NICB Special Agent Mark Wenthold told the Oklahoman.

A representative for the Oklahoma City Police Department told the Oklahoman that one way to discourage this type of auto insurance fraud is to report all accidents to the police, regardless of whether an injury has occurred. A police investigation, he said, will deter fraudsters and damage their false claims.

The NICB's website, www.nicb.org, has on more information on preventing all types of insurance fraud, particularly those involving auto accidents, as well as a tip line.ADNFCR-2297-ID-19787212-ADNFCR

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