March 26, 2009 2:05 PM

Car Arsons For Insurance Cash On The Rise

By
Mark Strassmann
(CBS)  Arson investigators say every time the economy flames out, they get busy. Now, amid the worsening recession, new figures show police are facing a rising number of auto arsonists - specifically, people torching their cars for insurance money, as CBS News correspondent Mark Strassmann reports.

Outside Las Vegas, the desert's a dumping ground for the red-hot recession insurance scam. In fact, it's detective Mark Menzie's full-time beat.

"This wasn't your typical auto thief who did this," Menzie said as he examined a charred sedan.

So many cars are dumped every day over such a vast area that the Las Vegas Police patrol by daily by helicopter to find them.

In this worsening economy, suspicious car fires have spiked from coast to coast. Car arsons are up in New York, New Jersey, Ohio, Texas, Pennsylvania, Mississippi, California, South Carolina, Utah, Arkansas and Nevada.

In California, suspected car arsons jumped from 258 in 2005 to 452 in 2008. And in New York, the number of people arrested for setting their own vehicles on fire went from 96 in 2007 to 130 last year.

One weekend alone, Las Vegas police found 10 charred cars.

"It's just gone completely crazy. There's probably not a night where there's not a vehicle burning somewhere in the desert around Las Vegas," Menzie said.

And it's not just junkers. Many are late model cars, some just months off the dealer's lot, all of them lit up by people trying to cash in bogus insurance claims.

Most of these car fires are not set by professional arsonists, but by amateurs: everyday people, caught in a financial bind, suddenly desperate.

John Thompson, an insurance investigator, says real thieves would never leave valuable parts on cars they torch.

But on a recently torched new Chrysler, "The airbag system is still intact, the electronics is still in the vehicle and all the seats," Thompson points out.

To him, that says amateur job.

And surveillance videos show amateurs at work. One guy caught on tape struggles to light his Toyota Tacoma, instead, spotlighting himself for the police to arrest.

Another amateur arsonist fares even worse. Frustrated with the dim flames inside his Cadillac Escalade, he opens a door. A surge of oxygen sparks a fireball - setting him on fire.

Menzie says these are usually people who have never been arrested for anything but are in deep in debt.

In other words, this isn't your career criminal. It's your neighbor. Neighbors desperate enough to roll the dice in a city famous for bad gambles.

Copyright 2009 CBS. All rights reserved.
Add a Comment
by fundu2009 March 28, 2009 11:02 AM EDT
this wouldnt be so bad if the credit agencys and car dealers would understand that things are pretty bad now....they dont see that all they want is there money no matter what you have to do....
Reply to this comment
by credibility2 March 26, 2009 6:07 PM EDT
This is as vile and disgusting as people who vandalize and trash their homes that are in foreclosure. As if the mortgage holders or auto insurance companies are to blame for an individual's economic situation. People who commit these types of crimes need to be arrested and prosecuted to the fullest extent of the law. Ultimately those of us who continue to be responsible and do the right thing end up having to pay for this type of criminal behavior with higher insurance premiums. Once again, those that are responsible are forced into picking up the slack again and again for the irresponsible low-life bottom-feeders.
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by ianlou March 26, 2009 8:48 AM EDT
American builds car in Detroit
Another American buys car on credit
American loses job because of bad economy
American can't sell car because of bad economy
American Burns car for insurance pay off
American needs a new car
Another American builds another car in Detroit
Economy improves


Now that's Capitalism.
Reply to this comment
by roblin2005 March 25, 2009 11:51 PM EDT
Burn your T.V.

Buy a bicycle. Buy a cowboy hat and a horse.
Reply to this comment
by cs4466 March 25, 2009 10:15 PM EDT
Hahah some of those "amateur" car arsonists are funny!!! There could be a tv show featuring them, profiling their pathetic lives and even more pathetic attempts at crime. Now THAT would be entertainment!
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by Thomt01 March 25, 2009 8:23 PM EDT
The reason Insurance companies charge so much is because of the fraud. 100 Billion Dollars a year in fraudulent claims that you and I have to pay extra for. Commiting Insurance Fraud effects us all and the economy. Everyone pays a least $300 per year extra in premiums because of fraud. Thats like saying its hard to feel sorry for a bank or local store that gets robbed because they how much they charge, There is no justifiction for any of it.
Reply to this comment
by sserp37 March 25, 2009 7:55 PM EDT
Why not, I'd love to drive more vehicle than I could afford, but don't! And, yea, I'd love to live in a fancier house, but don't. It's called living within your means!
Reply to this comment
by RepubsSuck March 25, 2009 7:42 PM EDT
Given the crooks in the auto industry, its no surprise especially since just like our homes now, most folks are upside-down in their auto loans too!

A little justice in an unjust world...
Reply to this comment
by cmc1227 March 25, 2009 7:40 PM EDT
It's even harder to feel sorry for the idiot that gets caught torching their car.
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