Auto Theft Myths versus Facts

In 2005, a vehicle was stolen every 25.5 seconds in the United States, based only on data for the 1,235,226 stolen vehicles reported to the National Crime Information Center (NCIC). Using the FBI’s average valuation of $6,173 per stolen vehicle, this amounts to over $7.6 billion in losses in 2005 – just in vehicle value alone. (see press release at www.nicb.org)

“Auto theft is an expensive crime, so it is important to be prepared in advance to handle your vehicle being stolen. But all too often, consumer attitudes about preventing vehicle thefts are based on misconceptions, which can lead to expensive consequences for the unprepared victim,” says Carolyn Gorman, Vice President of the Insurance Information Institute (I.I.I.), a non-profit consumer education organization.

Impossible To Totally Avoid Being A Victim
Victims like Stephen Cox say it can be nearly impossible to avoid being the victim of an auto theft, even for those who install anti-theft devices or park in a secure area. Speaking from personal experience, Cox, who is Vice President, Communications for the Council of Better Business Bureaus, says, “Car thieves, like home burglars, are not usually deterred by a single layer of protection.” Cox had two vehicles stolen in a three-year period when he was living in California, both of which had manufacturer-installed security systems that were disabled by the thieves. These included a Pontiac Firebird with a CLUB anti-theft device that was stolen in daylight and a Nissan 300ZX that was stolen at night from a gated community.

Robert Bryant, President and Chief Executive Officer of the National Insurance Crime Bureau (NICB), the insurance industry’s theft and fraud fighting organization, suggests the more layers of protection on your vehicle, the more difficult it is to steal. “Motorists driving theft-prone vehicles need to take additional steps such as installing a visible deterrent like a steering wheel lock, alarm or other type of disabling device.”

While it is important for consumers to know how to help prevent vehicle theft, the “Wiser Drivers Wise Up” program is focused on educating drivers to be better prepared to handle a vehicle theft when it does occur (www.wiserdrivers.com), with information provided by a team comprised of the Insurance Information Institute (I.I.I.), Council of Better Business Bureaus and the National Insurance Crime Bureau (NICB).

Myth: Most Thefts Occur in Unprotected Areas. Despite conventional wisdom, parking in an unprotected area does not mean your vehicle is more likely to be stolen. An FBI report on “Crime in the United States” indicates that more than one-third of all vehicle thefts occur at a home or residence, compared to only two of every 10 vehicle thefts occurring at a parking lot or parking structure. Vehicles that are stolen from highways, roads or alleys, including carjacking, account for the least number of thefts.

Myth: Stolen Vehicles Are Usually Found. Drivers who believe their stolen car will eventually be found also may be making a false assumption, especially if their vehicle has been missing for more than six days. Although about one-half of all stolen vehicles are recovered, the first few days are critical. Even if the vehicle is recovered, it may be completely totaled. The longer the vehicle is in the possession of criminals, the less chance of recovery. Interestingly, Fridays and Saturdays are the days with the highest frequency of motor vehicle theft and Mondays and Tuesdays have the highest recovery rates.

Myth: Insurance Always Provides a Rental Car. Another common misconception many insured drivers have is that once they report a stolen car, their auto insurance will automatically cover a rental car until their vehicle is found or they are authorized by their insurance company to buy a new one, which can take several weeks. Unfortunately, although insurance for theft is included in the comprehensive part of an auto insurance policy, this coverage may not automatically include coverage for a replacement rental car for a stolen vehicle. Since replacement rental car coverage is only a couple dollars a month, it can cost more for a one-day car rental than for a full-year of coverage.

Myth: Anti-Theft Devices Are Easy to Install. Pay a competent professional to wire, install and test the anti-theft system because there is too much complexity in today’s vehicles for an untrained person to cut into a vehicle’s electronics. Don’t select the installer on price alone; check with the Better Business Bureau (www.bbb.org) for a report to see if the business is reputable. Also, ask if the alarm system technician is certified by the Mobile Electronics Certification Program (MECP). If not, you may want to look elsewhere. And, make sure the shop provides a written warranty and will take the time to show you how the anti-theft system works so that you are comfortable with its operation.

Myth: Thieves Are Not Interested in Older Vehicles. Those who believe that older vehicles are of no interest to thieves should think again. In 2005, the top five model years stolen were 1991,1995,1989,1994 and1997, respectively, according to The National Insurance Crime Bureau (NICB), which combats auto theft by investigating cases referred to it by insurers and through its online databases. “Older vehicles are most often taken for their parts which are no longer manufactured and are too difficult or expensive to obtain,” said Robert M. Bryant, president and chief executive officer of NICB. Unfortunately, motorists with older vehicles who have dropped comprehensive coverage to save money are not covered for theft and do not qualify for replacement rental car coverage. NICB also publishes annual lists of the top thefts by region and by year, make and model, as well as most popular colors stolen and other information, including tips to help avoid theft using its “Layered Approach to Protection” at www.nicb.org.

The bottom line is not to wait until after your vehicle is stolen to find out you don’t have the coverage you think you have. Consumer Reports (www.consumerreports.org) advises drivers to review their auto insurance policy once a year, including coverage you must have, coverage you’ll probably need, and additional types of coverage, including roadside assistance and rental reimbursement.

Supported by 1,000 major property and casualty insurance companies, the National Insurance Crime Bureau (www.nicb.org), based in Chicago, and is a not-for-profit organization dedicated exclusively to fighting insurance fraud and theft through criminal investigations, industry training and public education programs. For more information on fraud and how it affects everyone, please visit www.nicb.org.

The Insurance Information Institute (www.iii.org) is a non-profit, communications organization supported by the property/casualty insurance industry.

The Council of Better Business Bureaus, based in Arlington, VA, is the umbrella organization for Better Business Bureaus (BBBs) which are supported by 380,000 business members nationwide. The Council and all local BBBs are private, non-profit organizations funded by membership dues and other support. BBB reports on insurance companies, agents and agencies and other types of businesses can be accessed at www.bbb.org.

BBB Advises Seniors: Intruders Don’t Always Arrive on Foot! Family Members Urged to Help “Scam Proof” the Homes of Elderly Relatives

With the weather turning cooler, many seniors will spend more time at home, which is not always a safe haven. The BBB is urging families of seniors to safeguard their homes against scam artists.

Scam artists today are not looking for items to steal. They seek to obtain personal information (Social Security, bank account and credit card number) and money. And, unlike traditional burglars, scam artists are happy to find someone at home, particularly if that person is a senior citizen.

“Con artists consider seniors to be easy prey and choose their entryway accordingly: the telephone, the front door bell or the mailbox,” said Bill Moak, president of the Better Business Bureau of Mississippi, Inc.

Seniors can be vulnerable due to their trusting nature, their age and their living conditions. It is not unusual for seniors to trust strangers who are friendly, earnest and claim to have their best interests at heart or to be assisting the less fortunate.

The BBB recommends that family members, neighbors and friends of elderly citizens take a three-pronged approach – Check, Protect and Defend -- to help them from being defrauded.

• Insist that your elderly relative check with the BBB whenever they receive a phone call, a piece of mail, a flyer or a visit from an unknown person, business or charity. Urge them to call the BBB before they let anyone into their home, hand over any money or personal or financial information, sign any contract or donate any money.
• Teach them to protect their personal information. They should not carry their Social Security card in their wallet or purse. Warn them to never give out their mother’s maiden name, their Social Security number, bank account number or credit card number to an unknown individual, no matter how tempting the offer.
• Help defend against scam artist intruders. Put the senior’s phone number on the National Do Not Call registry (phone 1.888.382.1222) to reduce calls from telemarketers. Post a “No Solicitation” notice by their front door. Help them to sort through their incoming mail. Explain why they shouldn’t respond to certain advertisements and point out suspicious mailings. Watch TV with them to check their interest in infomercials. Discourage them from sending money in response to “too good to be true” offers.

“Vishing” is the New “Phishing”

Better Business Bureaus frequently warn that scam artists are the first to take advantage of new technology. The latest example of scammer ingenuity is the use of Voice over Internet Protocol (VoIP) phones to steal people’s financial information. This new scam is called “vishing” -- short for “voice phishing.”

It can work one of two ways. In the online version, the con artist sends a blast e-mail, disguised to appear as though it’s from a financial institution, an online payment service or other well-known business. The e-mail may sport a trusted logo, typically reports a “security” problem with the recipient’s account and urges the victim to call a telephone number to “straighten things out.”

The recipient, who knows better than to click on imbedded hyperlinks in strange e-mails for fear of being “phished,” feels safer calling a telephone number. The area code might be a local one they easily recognize or appear to be toll-free. When the victim calls, they reach an automated attendant prompting them to enter their account number, password or other private information for “security verification” purposes.

Some “vishers” use automated dialing programs to “cold call” victims. The caller ID device may list a legitimate-looking local phone number, to inspire trust from the recipient. A prerecorded message (or sometimes a live “employee”) claims the victim’s account has been compromised or needs updating or verification. The victim is asked to enter their account information, which is digitally transcribed onto the hard drive of the scammer’s computer.

The BBB offers consumers these tips to protect against “vishing” scams:

• Typical “vishing” e-mails imply urgency, ask you to verify account information, and may contain misspellings.
• If you receive a “vishing” phone call, hang up. Call your bank, using the phone number on the back of your debit or credit card, and report the matter.
• Banks do not use prerecorded messages to handle security issues. If they telephone you to report suspicious use of your card, they do not need to request identifying information because they already have that on record.
• Do not automatically trust a phone number based on its area code. Con artists can hack into Caller ID systems, and VoIP users can assign any area code to a phone number.
  

If you think you have been a victim of “vishing” visit the FTC’s Identity Theft Web site at http://www.consumer.gov/idtheft/con_about.htm.

BBB: Watch for Postal Job Scams

The Better Business Bureau of Mississippi is warning Mississippians to not fall for ads promising federal jobs, in exchange for hefty up-front fees.

Signs on utility poles and in classified ads promise you can make excellent money working for the U.S. Postal Service and other federal agencies. One ad recently seen in Jackson promises you can make an average of $57,000 per year working for the U.S. Postal Service. However, the BBB called the number and were told that, in exchange for a $99 fee, job-seekers would get a training manual and a test to take at home. Although the representative would not name the company for which she worked, she promised that an 80% or higher score on a job test would guarantee employment.

“Consumers should know that these companies are looking to cash in on something that consumers can get for free,” said Bill Moak, President of the Better Business Bureau of Mississippi. “In addition, don’t believe any guarantees that you will get a job. Unfortunately, people who are jobless are often asked to pay money they can ill-afford to lose.”

The U.S. government’s Office of Personnel Management (OPM) makes federal job listings available for free through local libraries, and on the Internet at www.usajobs.opm.gov. There are no charges for applying for any federal job. Federal agencies and the U.S. Postal Service never charge application fees, sell study guides for job tests, or guarantee that an applicant will be hired. If positions require a competitive examination - and many do not -the federal agencies doing the hiring usually offer free sample questions to applicants who sign up for the exam.

To help you recognize federal job scams, the Better Business Bureau, along with the Federal Trade Commission, suggest you be aware of the following types of ads or techniques used by scam artists.

Ads that offer information about "hidden" or unadvertised federal jobs.
Ads that refer to a toll-free phone number. Often in these cases, an operator encourages you to buy a "valuable" booklet containing job listings, practice test questions, and tips for entrance exams.

Classified ads or oral sales pitches that imply an affiliation with the federal government, guarantee high test scores or jobs, or state that "no experience is necessary."

Toll-free numbers that direct you to other pay-per-call numbers for more information. Under federal law, any solicitations for pay-per-call numbers must contain full disclosures about cost. Also the solicitation must make clear if there is an affiliation with the federal government. You must have a chance to hang up before you incur any charges.

If you have questions about a company's advertisement for employment services, contact the BBB at www.bbbms.org. Information is also available from the Federal Trade Commission at www.ftc.gov and the U.S. Postal Inspection Service at www.usps.com/postalinspectors.

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