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FAIR - Fighting Auto Insurance Rip-offs

FAIR LogoSecretary of State Ruth Johnson has announced a new initiative to protect consumers after her office uncovered significant evidence of fraudulent auto insurance certificates.

"We have 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."

Bogus Businesses Revealed thumbnailJohnson announced the launch of a joint effort: the Fighting Auto Insurance Rip-offs (FAIR) initiativethat includesthe 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.

The 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.

Cost of Fraud thumbnail

















One-Day Snapshot thumbnail

July 31, 2013: One-day Snapshot - 16.1% of certificates submitted invalid
(See report by County)

fraud extremes thumbnail

Fraud Extremes - from sophisticated to ridiculous

Consumer Scams thumbnail

Consumer Scams - Actual posting from craigslist:

crimes exposed thumbnail

Crimes Exposed - Phony Call Center, Fake Companies & more.






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