Scribd
Upload
73 views2 pages

Arson Fraud Questions and Answers

Arson fraud is a type of insurance fraud where property owners deliberately destroy or damage their property through fire in order to collect insurance money, usually due to financial hardship. Individuals and business owners commit arson fraud for profit. Arson fraud is difficult to detect but can be uncovered through forensic evidence and investigation of how the fire progressed. It is a serious crime that can result in injury, death, and economic losses to communities through increased insurance rates.

Uploaded by

KuyaMars Lorga Aidad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
73 views2 pages

Arson Fraud Questions and Answers

Arson fraud is a type of insurance fraud where property owners deliberately destroy or damage their property through fire in order to collect insurance money, usually due to financial hardship. Individuals and business owners commit arson fraud for profit. Arson fraud is difficult to detect but can be uncovered through forensic evidence and investigation of how the fire progressed. It is a serious crime that can result in injury, death, and economic losses to communities through increased insurance rates.

Uploaded by

KuyaMars Lorga Aidad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Arson Fraud questions and answers

What is Arson fraud?

Arson fraud is insurance fraud is committed by property owners who deliberately


destroy or damage their property by fire for the purpose of collecting from their
insurance companies. The motive for this act is profit and it is usually committed by
individuals who find themselves in difficult financial positions, such as high debt,
possible foreclosure or bankruptcy.

The typical arson fraud involves an individual or a conspirator setting fire to their home,
business or automobile. The intent is to collect insurance money to pay off a loan or
mortgage balance which may be in excess of the value of the property.

Business owners also commit arson fraud for the same reasons as individuals.
However, business owners are often more savvy than individuals when it comes to
arson fraud and the monetary impact is greater. They sometimes hire professional
arsonists to perform the act. In addition, they are more adept at perpetrating more
elaborate schemes such as claiming damage to inventory that didn’t exist or was
removed from the building before the fire was set.

Who commits Arson?

The following list provides some answers to who commits arson.

 Individuals may commit arson for the thrill of it. Targets are random and
opportunist.
 Individuals may commit arson as a means of revenge or hate against an
individual or group of individuals. Targets can be neighbors, employers and
other racial/ethnic groups.
 Individuals may commit arson as a method to hide another crime. Criminals
set fires to destroy evidence of their unrelated crimes.
 Individuals may commit arson as a way to profit. This commonly is referred to
as arson fraud and it is committed by owners of insured property who hope to
benefit financially by this act.

How is Arson detected?

Some people believe that arson is difficult to detect because the evidence is destroyed
by the fire. This is not always true. There is usually forensic evidence remaining that can
be used by a professionally trained fire investigator to establish that arson has been
committed. The residue from flammable materials can be detected scientifically or by
use of trained animals. Evidence as to how the fire progressed provides other clues as
to its cause and origin.
Why is Arson fraud a serious crime?

Arson is a serious crime because it may result in personal injury and death as well as
economic loss.

 Arson fraud results in the deaths of innocent victims and firefighters killed as
a direct result of the arson fire.
 Arson fraud impacts other individuals and businesses whose property was
destroyed or affected by the arson fire.

Additionally, arson fraud has the effect of raising insurance rates for all property owners
within the community.

What does Arson cost?

The United States Fire Administration reported the following arson statistics for
Connecticut during 1997 the most recent year available:

 Arson was the cause of 2,448 fires reported.


 Arson accounted for over 17% of all fires reported.
 Arson caused over $11 million in property damage.
 Arson caused five civilian deaths

What is being done to combat Arson fraud?

 Federal and state law enforcement agencies have established task forces to
investigate and prosecute arson cases.
 Insurance companies have created special investigative units (SIUs) to
investigate claims that may involve arson.
 The Insurance Department has undertaken action to alert insurance
consumers of fraud problems.

Who should you contact if you believe Arson has been committed?

 Report all cases of suspected arson to the Fire Marshall in your local town or
city fire department; and
 Report all suspected arson cases involving insurance fraud to the Connecticut
Insurance Department at:

You might also like