Vehicle Finance Fraud Update: Wildfire

A syndicate of 7 members has been identified in the Durban area and is under investigation for submitting false claims to insurance companies. The subjects will buy a luxury vehicle from a salvage company and apply for finance from a reputable finance house. The subjects apply for the maximum finance amount possible by financing extras on the vehicles to ensure that they obtain a sizeable amount.

Once the finance has been approved and the subjects received the money from the finance house, the vehicle is reported as stolen or hi-jacked and a claim is submitted to the insurance company. The insurer subsequently pays the claim amount to the finance house. To date, the syndicate has submitted false claims to the value of R 2 100 000.00.

The first subject was found and arrested on 2013/02/26 and is now awaiting a trial date in the Commercial Court in Durban. Further arrests are imminent.