There is growing evidence of increased cases of car ownersfraudulently dumping their unwanted vehicles for insurance money,according to research by the Coalition Against Insurance Fraud.

Officials in nearly a dozen state and local jurisdictions aroundthe United States report clear warning signs that so-called ownergive-ups are rapidly spreading, CAIF said.

The signs include recent increases in suspected vehicle arsons,rising investigations of suspected give-ups, and in some cases aspike in arrests, the coalition reported.

"Insurance fraud normally increases during a troubled economy,"Dennis Jay, executive director of CAIF, noted in a statement. "Thecredit crunch, subprime meltdown, higher gas prices and generaleconomic distress have led more drivers to seek a bailout throughinsurance money. They're literally being driven todesperation."

Drivers typically torch their vehicles, sink them in waterways,simply abandon them in remote areas, or even sell them to chopshops, CAIF said. The drivers then tell their insurer that someonestole the vehicle. This is a traditional insurance scheme that israpidly spiking this year, Mr. Jay said.

Among the CAIF's findings:

o Arrests increased 25 percent in New York, with most happeningin the New York City area, according to the state's insurancedepartment.

o In New Jersey, suspected vehicle arsons rose from 59 in 2004to 94 by August 2008, the state's Fire Marshal said.

o In Ohio, where unemployment has hit a 15-year high, vehiclearsons reached 3,168 last year compared to 2,872 in 2006, the FireMarshal there said. In Columbus, vehicle fires rose from 140 in2005 to 202 in 2006.

o In California, insurers referred 50 percent more suspectedgive-ups to the insurance department during the fiscal year endingJune 30. In Fresno County, 12 people allegedly ran a ring thatburned vehicles for clients.

o In Utah, the fraud bureau was investigating 30 suspectedgive-ups as of early September, compared to a normal caseload ofone or two.

o In Arkansas, the fraud bureau logged 18 suspected give-upsjust in July and August compared to a normal caseload of one or twofor the entire year, the fraud bureau said.

o State Farm reported a substantial increase in suspectedgive-ups in Florida. Local law enforcement in the Miami area isseeing a spike in the number of give-ups.

Insurers and police are on the lookout for these frauds, "soit's a lousy way of trying to get out of a financial jam," warnedMr. Jay. He noted that perpetrators of these acts can findthemselves with a criminal record and possibly jail time, plusstill be responsible for paying off their car loan.