In our recent article on Vehicle Sightings Reports, we explored how this powerful investigative tool is revolutionizing fraud detection for SIU operations. But theory only goes so far. What does this technology look like in practice?
Here are two case studies that demonstrate the tangible impact of Vehicle Sightings Reports, and why they've become an indispensable part of modern insurance investigations.
Case Study #1: The Commercial Fleet Scheme
The Claim: A commercial auto policy covered a fleet of delivery vehicles for a small logistics company. The policy listed the business address as a rural location with significantly lower commercial rates. Following a major collision involving one of the fleet vehicles with substantial injury claims, the SIU ordered a Vehicle Sightings Report as part of standard protocol.
The Investigation: The Vehicle Sightings Report covered a 90-day period leading up to the collision. What it revealed was a pattern of systematic deception that had been ongoing for well over a year.
The Results: Over the 90-day monitoring period, the vehicle in question was sighted 73 times at a commercial warehouse facility in a major metropolitan area—42 miles from the policy's listed business address. The pattern showed consistent overnight presence with sightings between 8 PM and 6 AM occurring five to seven days per week, along with multiple daytime sightings indicating active operations from that location.
The rural policy address?Only three sightings during the entire 90-day period—all occurring on weekends.
Expanding the Investigation: With this smoking gun evidence in hand, the SIU expanded its investigation to examine the company's other fleet vehicles. Two additional vehicles showedi dentical patterns, confirming that the company's actual operations were based entirely in the urban location.
The Financial Impact: The rate differential between rural commercial coverage and urban commercial coverage for this fleet would have increased annual premiums by approximately $8,400. The company had been operating from the city location for over 18 months while fraudulently maintaining the rural address on the policy—representing more than $12,600 in stolen premium.
The Outcome: The collision claim was denied based on material misrepresentation. The commercial policy was rescinded, and the case was referred to the state insurance fraud bureau for criminal investigation of commercial insurance fraud. The carrier avoided paying out on a substantial injury claim that could have exceeded $150,000, all because a routine Vehicle Sightings Report revealed the truth.
Key Takeaway: Commercial rate evasion is a lucrative fraud scheme that often goes undetected for years. Without objective location data, this company might have continued operating under false pretenses indefinitely. The Vehicle Sightings Report didn't just save the carrier money on one claim—it exposed a long-term fraud scheme that had been draining premium revenue for 18 months.
Case Study #2: The Phantom Damage
The Claim: A comprehensive claim was filed for significant body damage allegedly sustained in a parking lot hit-and-run. The policyholder reported discovering the damage upon returning to their vehicle after shopping. No witnesses, no note left behind, no surveillance footage available. The estimate totaled $4,200.
The Red Flag: Something about the claim felt off to the experienced adjuster handling the file. The damage pattern seemed inconsistent with a typical parking lot incident, and the claimant's description of events felt rehearsed. Rather than immediately approving the claim, the adjuster requested a Vehicle Sightings Report.
The Investigation: The Vehicle Sightings Report was ordered to capture any available photographs of the vehicle in the weeks leading up to the reported date of loss.
The Results: The report delivered exactly what the adjuster suspected. Photographs from a sighting 28 days before the reported date of loss clearly showed the same damage pattern visible in the current damage estimate. The dent, scraping, and paint transfer were all present in the historical image—captured automatically by an ALPR camera nearly a month before the claimant allegedly "discovered" the damage.
The Confrontation: Armed with irrefutable photographic evidence timestamped and geolocated, the carrier's SIU confronted the claimant with the findings. The claimant initially attempted to explain the discrepancy, claiming they "hadn't noticed" the damage before, but the photographic evidence made any explanation untenable.
The Outcome: When faced with undeniable proof of pre-existing damage, the claimant withdrew the claim. The carrier saved $4,200 in fraudulent payout, and more importantly, the claimant's attempt to commit insurance fraud was documented in the system, flagging them for enhanced scrutiny on any future claims.
Key Takeaway: Pre-existing damage fraud is notoriously difficult to prove without historical evidence. Traditional investigations might rely on repair shop records, which are often unavailable for unreported damage. Vehicle Sightings Reports provide an automated evidence trail that captures what the vehicle actually looked like in the weeks and months before a claim—turning a "he said, she said" dispute into an open-and-shut case.
The modest cost of the Vehicle Sightings Report delivered a significant return on investment, not counting the deterrent effect of catching and documenting the fraudulent attempt.
The Common Thread: Objective Data Wins Cases
Both of these cases share a critical element: objective, timestamped, photographic evidence that couldn't be explained away or disputed.
In the commercial fleet case, no amount of clever explanations could overcome 73 urban sightings versus three rural sightings over 90 days. The data pattern was conclusive.
In the phantom damage case, a photograph showing pre-existing damage 28 days before the reported loss was irrefutable proof of fraud.
This is the power of Vehicle Sightings Reports. They remove ambiguity, eliminate reliance on witness credibility, and provide SIU professionals with the kind of evidence that stands up under scrutiny—whether that's during a recorded statement, in arbitration, or in court.
Lessons for SIU Operations
1.Trust Your Instincts—ButVerify With Data
The adjuster in the phantom damage case had a gut feeling something was wrong. Rather than ignoring that instinct or approving the claim anyway, objective data was requested. Your experienced adjusters and investigators develop pattern recognition for a reason—give them the tools to verify their suspicions.
2.Make Vehicle Sightings Reports Standard Protocol
The commercial fleet fraud was uncovered because the SIU ordered a Vehicle Sightings Report as standard protocol on significant claims. If they had relied solely on traditional investigation methods, this 18-month fraud scheme might still be ongoing. Consider making these reports standard on:
- All commercial auto claims above a certain threshold
- Any claim involving address discrepancies or red flags
- First-party comprehensive claims where pre-existing damage is suspected
- Claims from policyholders with prior suspicious activity
3.Think Beyond theImmediate Claim
The commercial fleet investigation didn't stop with one vehicle. Once the pattern was identified, the SIU expanded the investigation to other fleet vehicles, uncovering the full scope of the fraud. Vehicle Sightings data can reveal patterns across multiple vehicles, multiple claimants, and multiple claims—helping you identify organized fraud rings and systematic schemes.
4.Act on the Evidence
Both cases resulted indecisive action: claim denials, policy rescissions, and fraud bureau referrals. Vehicle Sightings Reports provide evidence strong enough to take aggressive action with confidence. Don't let fraudsters off with a warning—use the evidence to send a clear message that fraud has consequences.
The ROI Is Clear
In just these two cases,Vehicle Sightings Reports:
- Prevented payment of fraudulent claims totaling more than $150,000
- Exposed $12,600 in stolen commercial premiums
- Documented fraud attempts for future reference
- Enabled successful claim denials that withstood challenge
- Supported referrals to law enforcement for criminal investigation
The cost of the reports? A tiny fraction of the losses prevented.
Your Next Step
If these case studies resonate with claims you've seen in your own operation, it's time to add Vehicle Sightings Reports to your investigative toolkit. The technology exists, the data is available, and the results speak for themselves.
For more information on how Vehicle Sightings Reports work and their practical applications in insurance investigations, read our comprehensive guide: Vehicle Sightings Reports: The Investigative Tool That Tracks What Claimants Won't Tell You.
Delta Group's Vehicle Sightings Report service delivers precise, actionable intelligence that has helped SIU professionals nationwide detect fraud, verify information, and build bulletproof cases. Our reports include exact addresses, GPS coordinates, frequency of sightings, time-of-day patterns, and visual evidence—all designed to give you the critical insights you need when the stakes are high.
Ready to see what Vehicle Sightings Reports can reveal about your next suspicious claim? Contact Delta Group at info@deltagroup.net or call (800) 329-4143.
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