CA Getting Grant to Help Combat Insurance Fraud
The state of California has many monetary budget woes. A District Attorney who is named Maria Ramirez tried to take down criminals who commit auto insurance fraud. This can be hard to do when funds are scarce. Now, there will be some relief for the state who wants to address auto insurance fraud.
A 23 million dollar grant has been set up for the state to fight insurance fraud. The district attorneys will get to split the money so that they can devote more time and resources to the cause.
California is a very cash strapped state so they need to focus on sealing up any possible losses. When a person decides that they are going to stage a fake automobile accident, they cost insurance companies and California drivers money.
The way that this problem happens is that a person decides that they are going to stage an automobile accident. They then wait until the right time to have the fake accident occur. Usually this is when they see a single car behind them and then pretend like they are trying to slam on the brakes quickly to avoid causing an automobile accident. They are then involved in a non-threatening fender bender with the other driver.
Most drivers are not suspicious of other drivers because they know that automobile accidents happen on a daily basis all across the globe. However, in states like California and Florida, criminals are making a lot of money off of these auto insurance fraud schemes. The state needs additional funds so that they can prosecute the offenders and set up investigations to track down the offenders and see that justice is served.
The funding will help district attorneys do surveillance and investigate the matters fully. Some cases take more than 12 months to investigate so having the additional funds will help to keep the process going so that more fraud schemes can be shut down. Many criminals who engage in this type of illegal activity work in networks so it can be hard to infiltrate them and get information. The grant money will benefit taxpayers because they will hopefully be able to get lower car insurance premiums down the road.
Source: Insurance Journal
