1. Vehicle Thefts and Related Offenses
FIFTEEN
Vehicle Thefts and Related Offenses

2. LEARNING OBJECTIVES Identify types of motor vehicle theft
Be familiar with techniques for disposing of stolen motor vehicles
Describe challenges associated with the theft investigation of heavy equipment and farm equipment
Identify major investigative resources
Discuss methods for assisting in the identification of a recovered vehicle
List and explain several vehicle theft fraud indicators
Describe vehicle fire investigation methods
Explain vehicle and equipment theft prevention approaches
Assess title and registration issues related to marine theft
Discuss aircraft and avionics theft and relevant identification and investigative techniques.
15-1

3. AUTO THEFT
It has been estimated that approximately two percent of reported thefts are of motorcycles
National and international rings operate, particularly in cities near ports, to export vehicles
Since the collapse of communism in eastern Europe, the theft of motor vehicles has skyrocketed
The theft of airbags and the resale of stolen salvaged airbags is becoming epidemic
15-2

4. TYPES OF THEFT
Motor vehicle thefts generally fall into one of four categories: temporary theft, joy riding, professional theft or fraud
Temporary theft. The term temporary theft is used not to imply that the crime is not serious but, rather, to distinguish joyriding from something more ominous.
Joyriding. Joyriders are most often teenagers - 15 to 19 years old - who steal a car simply to drive and then abandon it.
Professional Theft. The professional car thief is motivated by very high profits and generally low risk.
Fraud. These various types of crimes are generally committed by the owner, and the underlying purpose is to profit at the expense of an insurance company.
15-3

5. TECHNIQUES TO DISPOSE OF STOLEN VEHICLES
Chop Shops. Very simply, a chop shop is a place where stolen vehicles are disassembled for resale of their parts.
Quick Strip. A vehicle is stolen and stripped mainly for valuable accessories such as seats, stereos, car phones, and tires.
Salvage Switch. To the criminal the value of a salvaged vehicle is far greater than its parts.
Export. Vehicles manufactured in the United States are extremely popular in other countries.
Fraud B in General. Fraudulent auto theft claims are not the only type of fraud to which the insurance industry is subjected, but it is a significant part.
15-4

6. CHOP SHOPS Inside Chop Shops: Stolen vehicles are cut apart
Parts are sold to repair shops
Parts are also sold to salvage yards
(Courtesy National Insurance Crime Bureau)
15-5

7. FRAUDULENT THEFT SCHEMES
Fraudulent auto theft claim schemes fall into three major categories:
False-Vehicle Schemes
False-Theft Schemes
Inflated-Theft Loss Schemes
Defrauding the Owner and Insurer
15-6

8. FALSE-VEHICLE SCHEME
The insuring of and subsequent reported theft of a vehicle that never existed
15-7

9. FALSE-THEFT SCHEME
A reported vehicle theft that may in reality be an attempted insurance fraud by hiding, disposing of or giving up the vehicle
15-8

10. PROBLEMS RELATING TO THEFT OF OFF-ROAD EQUIPMENT
There are numerous problems relating to the theft of off-road equipment
Absence of titling and registration requirements
The lack of a uniform vehicle identification numbering system
The lack of an effective inventory control system by the equipment owners
15-9(a)

11. PROBLEMS RELATING TO THEFT OF OFF-ROAD EQUIPMENT (cont'd)
Until recently there were no permanent ID numbers on off-road equipment.
Unfamiliarity of most law enforcement officers with the:
nature
identity
terminology of heavy equipment
15-9(b)

12. ILLUSTRATIONS OF HEAVY CONSTRUCTION EQUIPMENT
Theft of heavy construction equipment
More than 2,500 pieces of this equipment are stolen each year
Title or registration of this equipment is not mandatory
The value of these pieces of equipment make them lucrative targets for thieves
15-10

13. COMMERCIAL VEHICLE AND CARGO THEFT
As noted earlier, the insurance industry pays out about $18 million a year for commercial vehicle theft
In actuality, it is difficult to convert this figure to numbers of vehicles because commercial vehicle theft statistics are part of the overall motor vehicle theft numbers
The theft of cargo from or in commercial vehicles is a rapidly growing criminal enterprise
15-11

14. INVESTIGATIVE TOOLS AND TECHNIQUES
Major Investigative Resources
National Insurance Crime Bureau
Canadian Insurance Crime Prevention Bureau. The Canadian Insurance Crime Prevention Bureau is to Canada what NICB is to the United States.
International Association of Auto Theft Investigators. Another resource available to the investigator is the International Association of Auto Theft Investigators.
State Organizations
15-12(a)

15. INVESTIGATIVE TOOLS AND TECHNIQUES (cont'd)
State Organizations
National Crime Information Center
Special Investigative Units
AAMVANET
Government Agencies
Manufacturers
15-12(b)

16. INVESTIGATIVE TOOLS AND TECHNIQUES (cont'd)
North American Export Committee
National Equipment Register
15-12(c)

17. VEHICLE IDENTIFICATION
Often the most difficult and time-consuming task facing an investigator is the identification of a recovered vehicle
Federal Safety Certification Label. All cars distributed in the United States since 1970 must have a federal safety certification label.
Federal Legislation. In an effort to reduce auto theft by easing the process of vehicle identification, Congress enacted the Motor Vehicle Theft Law Enforcement Act of 1984.
15-13(a)

18. VEHICLE IDENTIFICATION (cont'd)
VIN Editing and Reconstruction. In any investigation, even where it appears that the VIN has not been altered or defaced, it is incumbent on the investigator to check the validity of the identifying numbers.
VIN Restoration. The restoration of manufacturers’ serial numbers altered or obliterated from metal is a process that can be performed by an investigator with the proper material at hand.
15-13(b)

19. EXAMPLE OF 17 DIGIT VIN SYSTEM
Vehicle Identification numbering systems
is an individualized means of identifying a motor vehicle
it involves 17 characters for all U.S. made cars
1 G 1 A W K C R
Nation of origin
Make
Car line
Engine symbol
Model year
Sequential production number
Manufacturer symbol
Restraint
Body type
Check digit
Assembly plant
15-14

20. STOLEN VEHICLE INDICATORS
The thorough investigator will become suspicious enough from the presence of certain indicators to pursue an investigation to determine if auto theft has occurred
The indicators relate to the condition of the vehicle and/or the suspicious driver's behaviors
Missing or damaged ignition locks
Damaged doors, glove compartment or trunk
Broken or missing window glass
15-15(a)

21. STOLEN VEHICLE INDICATORS (cont'd)
Operating at night without lights
Being pushed or towed at night
Pry marks
Hidden or parked in a remote area
15-15(b)

22. STOLEN VEHICLE INDICATORS (cont'd)
Missing parts or accessories
A nervous driver
A driver unfamiliar with the operation
A driver wearing gloves in warm weather
15-15(c)

23. INVESTIGATION OF FRAUD CASES
Generally, the investigation of a motor vehicle fraudulent insurance claim case will center around questions involving the insured, the insurance policy, identification information on the vehicle, the police report, the status of the certificate of title, the condition of the vehicle, and any unusual conditions surrounding the claim.
15-16

24. VEHICLE THEFT FRAUD INDICATORS
Examples would include but not be limited to:
Insured has lived at current address less than six months
Insured’s address is a PO box or mail drop
Vehicle was purchased with case with no bill of sale
15-17(a)

25. VEHICLE THEFT FRAUD INDICATORS (cont'd)
Vehicle has an incorrect VIN.
Loss occurs within one month of issue or expiration of policy
Police Report is not made by insured or has been delayed
Salvage yard or repair garage takes unusual interest in claim
Appraiser has difficulty in getting into the body shop to view and estimate damage
15-17(b)

26. INVESTIGATION OF VEHICLE FIRES
Inspection of Salvage
External Inspection
Internal Inspection
15-18(a)

27. INVESTIGATION OF VEHICLE FIRES (cont'd)
Inspection of the fuel system
Inspection of the Electrical System
Inspection of the Motor, Radiator, and Parts Under and Near the Hood
Inspection of the Body
15-18(b)

28. VEHICLE THEFT PREVENTION TECHNIQUES
Some devices used to deter auto theft include:
Audible alarm systems
The boot under a front tire
Collars over steering column bowls
Decal alert systems that specify when the vehicle should not be driven
(Courtesy Citizens for Auto-Theft Responsibility—C.A.R., Inc.)
15-19(a)

29. VEHICLE THEFT PREVENTION TECHNIQUES (cont'd)
Fuel shut-off devices
Steering column ignition locks
Protective caps that cover ignitions
Transponders in the ignition that must be run electronically
15-19(b)

30. A COLLAR The collar is: used to deter auto theft
made of steel or alloy
is attached to the steering column bowl to stop penetration
(Courtesy Citizens for Auto-Theft Responsibility—C.A.R., Inc.)
15-20

31. EQUIPMENT THEFT PREVENTION TECHNIQUES
Examples of techniques used to prevent the theft of heavy or farm equipment include:
Security devices such as ignition locks
Do not leave keys in any equipment
Photograph all equipment
Leave equipment in well-lit areas
15-21

32. MARINE THEFT Scope of the Problem Hull Identification
Marine theft is a serious problem to the boating community
It includes the theft of boats, boat trailers, outboard motors, jet skis, and all equipment associated with boating or water activities
Hull Identification
Effective November 1, 1972, the Federal Boating Safety Act of 1971 required boats to have a 12 character hull identification number
15-22

33. TITLE & REGISTRATION ISSUES RELATED TO MARINE THEFT
Over 30 states require that boats be titled, but only a few states require the titling of outboard motors
Many boats are exempt from titling due to length or horsepower
Many jurisdictions don’t have computerized registration systems
Registration files in only a few states can be accessed using the National Law Enforcement Telecommunication System
15-23

34. MARINE POLICE
Marine theft is a serious problem and includes stealing of:
boats
trailers
outboard motors
all equipment associated with boating
© Bonnie Kamin)
15-24

35. AIRCRAFT AND AVIONICS THEFT
Scope of the problem:
Not as prevalent as theft of motor vehicles.
Theft of aircraft equipment if very lucrative
Investigation Resources
Investigators should contact airport management, aircraft companies, etc. to learn about avionics
Obtain as much information as possible before conducting a major avionics investigation
15-25(a)

36. AIRCRAFT AND AVIONICS THEFT (cont'd)
Aircraft Identification:
Have same basic identification information as do motor vehicles
Have registration number similar to license plates
Have a VIN
Have a make and model
15-25(b)