Gas prices and living expenses are rising, and a buck just doesn't go as far as it once did. During this time of financial hardship, some are turning to unscrupulous ways to stretch their dollars, including filing fraudulent claims. Jeff Berino, a seasoned fire investigator and deputy fire chief at Lake Dillon Fire-Rescue, talked to Claims' about how cracking down on auto arson can dissuade a frazzled policyholder from ever striking the match.
Tell us about your recent experiences with auto fraud, specifically arson.
There has been a slight increase in cases in my niche in Colorado, which could at least be partially attributed to the economic slump. Overwhelmed by high car payments and fuel expenses, drivers of gas-guzzling SUVs may turn to arson. During an investigation, we often learn that the owner had missed payments and/or lost his job prior to the event.
A fairly recent case involving an owner of a late-model Ford Expedition met key criteria for arson before we even got involved. Some probing into financial records revealed that the owner was delinquent with his car payments. We later observed the blaze originated in the backseat, in a spot where no visible ignition source existed. Accidental fires starting outside of the engine compartment are possible, but are more likely to be attributed to arson.
All signs pointed to fraud. The gas cap was missing, and even though the keys were in the owner's possession, he claimed that someone stole the locked vehicle. In addition, we observed that the Expedition appeared to have bald tires and old rims that belied the fact that the newer-model vehicle had been driven a total of about 8,000 miles. About a week later, there was a break in the case: I noticed a newspaper ad for newer tires and rims that matched the car model and listed the owner's contact information.
Are you able to speak to certain schemes or telltale markers of fraud?
I can offer a unique perspective in that I work on both the public side (for the fire department) and on the private side for a forensic and engineering consulting firm.
In regard to fraudulent claims, the majority of auto fires occur within a three- to five-mile radius of the owner's residence. Also, if the fire happened on a dead-end road at 3:00 a.m., then there is usually reason to be leery.
Often, a policyholder will claim that standard equipment has been substituted with valuable components or that expensive items were in the car at the time of the fire. A physical examination of the elements in question may later reveal these items either never existed or their properties were exaggerated. For instance, an owner of a Porsche Cayenne switched the original high-end car stereo with a bargain model prior to torching it. Another insured claimed that pricy, name-brand graphite golf clubs were destroyed when his car went up in smoke. Upon closer examination, I noticed that the clubs were in fact steel and rather cheap looking. When an analysis confirmed my initial observation, I was able to start building a case on the insurance company's behalf.
What techniques do investigators use to determine what really transpired?
We can obtain samples to identify an ignitable liquid, which may leave a residue. Sometimes via laboratory analysis, we discover that the liquid present does not match the fuel in the gas tank or other liquids used in the vehicle's routine operation. Other times, a simple perimeter search leads us to the gas can that was used to ignite the blaze or a drip pattern leading away from the car. Fingerprint analysis can pinpoint who started the blaze and thus help us further assist insurers.
Many wrongly assume that all evidence is destroyed by the blaze. However, a charred car frame invariably leaves behind a good bit of evidence. The fact is that we are able to narrow down the root cause in most cases. According to national statistics, the cause is unknown in only about 30 percent of car fires.
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