Secretary of State Ruth Johnson has announced a new initiative to
protect consumers after her office uncovered significant evidence of
fraudulent auto insurance certificates.
bad guys who actually set up phony help desks so when our Secretary of
State office clerks call to verify a policy," Johnson said. "They reach
a real person who vouches for a bogus auto insurance policy. We are
going to put the brakes on the criminals who are selling this stuff and
are preying on unsuspecting Michigan drivers."
announced the launch of a joint effort: the Fighting Auto Insurance
Rip-offs (FAIR) initiative that includes the Michigan
State Police, prosecutors, state officials and insurance industry
leaders. She said her office is cracking down on suspected fraud through
targeted staff training and aggressive vehicle registration suspensions,
but the problem needs to be jointly addressed by the State of Michigan,
the law enforcement community and the industry.
severity of the problem became clear after a new law required all
insurance companies to send electronic insurance verification to her
office twice a month. On July 31, Johnson's office conducted a one-day
snapshot of the 15,000 registration renewals done across all Secretary
of State branches. When electronic verification was not available, staff
members verified about 3,500 paper insurance certificates submitted by
customers. More than 16 percent of the certificates checked that day
were fraudulent or not able to be confirmed.
July 31, 2013: One-day Snapshot - 16.1% of certificates submitted
report by County)
Fraud Extremes - from sophisticated to ridiculous
Consumer Scams - Actual posting from craigslist:
Crimes Exposed - Phony Call Center, Fake Companies & more.