CFE – Financial Transactions and Fraud Schemes — Question 4

Sinead has lost her job and can no longer afford the luxury car that she recently purchased. Instead of allowing her car to be repossessed by her bank, Sinead decides to leave her car in a high-crime area with the keys in the ignition, hoping that it will be stolen so that she can make an insurance claim for the loss. Sinead is planning to commit which of the following insurance scams?

Answer options

Correct answer: A

Explanation

The correct answer is A, Staged accident, as Sinead's actions are a deliberate attempt to create a scenario where she can claim insurance for a theft she orchestrated. The other options do not accurately describe her intention; Past posting involves placing bets after a race has concluded, Phantom vehicle refers to non-existent vehicles used in fraud, and Ditching typically describes abandoning a vehicle without the intent of claiming insurance.