Which scenario presents a strong indicator of possible fraud related to theft claims?

The scenario where the insured increases coverage shortly before a loss is a strong indicator of potential fraud related to theft claims because it raises a red flag about the insured’s intentions. When someone suddenly enhances their coverage, especially in close proximity to a reported theft, it may suggest that they are trying to maximize their potential payout from an upcoming claim. This pattern is often seen in fraudulent activities where individuals purposely alter their insurance to secure a larger financial benefit from a loss they intend to orchestrate or anticipate.

In contrast, the other scenarios do not present the same level of concern. For example, a theft happening months after purchase is not inherently suspicious, as it could occur for various legitimate reasons. Reporting a theft immediately may actually demonstrate the insured's good faith, highlighting a responsible approach to claims. Lastly, having no prior history of thefts can indicate a lower risk profile for the insured, suggesting that they may be less likely to commit fraud, thereby making that scenario less indicative of fraudulent behavior.