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Auto insurance scams on the rise

A down economy spurs an uptick in fraudulent claims

Financial troubles affect individuals in different ways – some are in denial of increasing debt while others are saving every nickel and dime to keep paying bills on time.

However there are many who resort to illegal measures when desperate for money. According to a report from Texas NBC News affiliate NewsWest 9, a growing number of car owners are submitting false claims to collect cash from auto insurance providers.

“Everytime there’s an economic struggle within our community they tend to be more tempted to try things and get away with things than they would normally,” Sergeant Alfredo Grimaldo of the Midland Police Department told the news source.

In fact, the unstable financial markets have seen an increase of fraudulent scams ranging from auto insurance fraud to tax scams to foreclosure rescue fraud.

During tax season, fraudsters were using mock IRS forms to obtain personal details from individuals and then using that information to commit identity fraud. More recently, non-reputable firms have been asking homeowners for money in exchange for undeliverable promises of foreclosure help.

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Posted: May 14, 2009

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