Recession is not only causing financial awry but it has forced many to resort to unfair means of getting hold of cash. As far as the auto insurance industry is concerned, insurance fraud has increased manifold. Reports suggest that many insurance policyholders are not keeping any stones unturned to get financial relief so that they can make ends meet. Auto insurance policyholders, who are not able to make payments for their premium etc, have found easy solutions for their problems. They are pushing their cars down the cliffs or setting fire to their vehicles. Many have also pushed their cars into lakes. The proceeds of the claim can help them in meeting their financial obligations.

Statistical data prove that incidence of vehicle fire increased by 27% during the first few months of 2009. The figure a year back was much less. This information was furnished by the National Insurance Crime Bureau that is responsible for investigating different kinds of insurance fraud.

One of the prominent forms of insurance fraud that is fast catching up in the insurance industry is Barbecuing a Beamer. In addition to this, cases of slip and fall and personal injury have also increased by 60% during the first few months of this year. Number of “staged car accidents” escalated by 34% and intentional damage to commercial property increased by approximately 76%. There are instances when these fake claimants get their money because insurance carriers are of the opinion that during the economic recession, there are so many claimants either with “staged accidents” or genuine cases, it is difficult to investigate each and every case very minutely.

In fact insurance officials are of the opinion that instances of insurance fraud are in several cases not reported. As such it is difficult to get the correct number of insurance fraud cases. The number of cases involving insurance fraud is increasing each day. This is evident from the fact that just a year back, the number of suspected insurance fraud cases where the owner sets his vehicle on fire was 596 as compared to 757 during the first 3 months of 2009.