"Fewer scams, lower rates: End state's reputation as the national center of auto insurance fraud"

You don't find Florida's consumer advocates and Florida's insurance companies holding hands very often, but they have become best buddies in the fight to end the state's reputation as the national center of auto insurance fraud.

According to the insurance industry, Tampa, Miami and Orlando are three of four leading cities for fraud, after New York. The industry further estimates that auto insurance fraud in Florida is a $1 billion business that adds roughly $100 to the premium of a family with two cars. Even if the industry's figures aren't precise, Florida Consumer Action Network Director Bill Newton has it right when he says, "If we can control fraud, everybody benefits."

Florida is vulnerable to such fraud because of the state's no-fault auto insurance law, passed nearly four decades ago. The goal was admirable: to settle claims from minor crashes out of court. Scammers, though, game the system by staging accidents, recruiting "victims" who get phony treatment at bogus clinics. Auto fraud is not a new issue for the Legislature, but the recent surge in no-fault claims - an estimated 46 percent increase between 2008 and 2010 - prompted creation of the Sunshine Alliance to Erase Fraud

A comprehensive anti-fraud bill is being drafted, with the sponsors to be Sen. Ellen Bogdanoff, R-Fort Lauderdale, and Rep. Jim Boyd, R-Bradenton. The main provisions will include a requirement that police take names of all passengers in a crash - to determine who was truly injured - a warning on applications for clinics' licenses that fraud is a crime, and the ability of insurers to interview, under oath, all claimants from a crash . The bill should not be confused with House Bill 967, which aims to reduce attorneys' fees in no-fault cases.

Prosecutors also can play a role. When Miami-Dade County State Attorney Katherine Fernandez-Rundle assigned one prosecutor strictly to auto fraud, industry analysts believe, scam operations shifted to Tampa. The goal, though, is not just to keep scammers on the run but to put them out of business. Florida is also home to plenty of Medicare and Medicaid scams, but the state needs to work with the federal government in cracking those rings. With auto fraud, Florida is in the driver's seat.

For more information please visit: http://www.palmbeachpost.com/opinion/editorials/fewer-scams-lower-rates-end-states-reputation-as-1296217.html?cxtype=rss_editorials

Craigslist Scam

The scam: There's nothing better than hitting the open road on a beautiful motorcycle, unless it's on a hot ride that you snagged at a bargain price. That was the offer facing Jim, a local reader of We've Got Your Back. Being a smart guy, Jim dug into the details and sniffed out a scam.

How it works: Jim cruised onto Craigslist, the free online classified ad site, and came across an offer for a lightly used Harley Davidson for less than $3,000. The alleged seller claimed to be a cruise ship worker who would naturally be out of town frequently. Jim writes that he saw ''red flags'' in her e-mail, including the sales price, which seemed to be $7,000 to $10,000 too low. He also was concerned about the seller's location in Florida and her willingness to ship the bike at no charge, when it would cost hundreds of dollars. Further, Jim was concerned about not being able to buy the bike with cash, as he had suggested.

What to do: Easy online research would show you that two people reported being ripped off by this same scam with exactly the same wording, except that the bike was with a shipping company in Stockton, Calif. Jim said he soon saw another posting on Craigslist by yet another victim. Use your common sense, he advises. If you see a bike that should go for three to four times the selling price, something is wrong. Use only secure methods to make online transactions, such as PayPal.

For more information please visit: http://www.mcall.com/news/local/all-5yback0807.6976137aug07,0,2422394.story