CFO Sink Reports Increased Efforts to Combat Growing PIP Fraud in Florida
Mar 5, 2010
In a press conference today, March 5, 2010, that was designed to draw attention to the prevalence of Personal Injury Protection (“PIP”) fraud in Florida, Florida Chief Financial Officer Alex Sink joined the Tampa Police Department and Allstate Insurance Company to report on increased efforts to combat PIP-related scams.
According to CFO Sink’s Division of Insurance Fraud, PIP is the most reported type of insurance fraud in Florida, accounting for 30 percent of all referrals received by that department from 2008 to 2009.
A related press release from the Office of CFO Sink is reprinted below.
CFO Sink Takes on Staged Accident Scammers
March 5, 2010
TALLAHASSEE – Florida CFO Alex Sink, the Tampa Police Department, and Allstate Insurance Company held a joint press conference today to draw attention to Personal Injury Protection (PIP) fraud and CFO Sink’s efforts to combat an increased number of scammers throughout Florida. Since July 2009, CFO Sink’s investigators have arrested 240 people for PIP fraud, resulting in 156 convictions.
“Staged accident fraud is not just a problem for insurance companies and victims, but ultimately for every Floridian who will see higher premiums because of it,” said CFO Sink. “We’re getting more and more referrals, which means we’re putting many more of these scammers behind bars.”
According to statistics from CFO Sink’s Division of Insurance Fraud (DIF), PIP is the most reported type of fraud, accounting for 30 percent of all referrals received in FY 2008-09. Insurance fraud is a third degree felony, punishable by up to five years in prison.
CFO Sink’s Division of Insurance Fraud has seven PIP squads located across the state dedicated solely to investigating PIP fraud. These squads are located in the division’s Central and South Florida regional offices where PIP fraud is most prevalent.
Most Common Types of PIP Fraud:
- Reporting a collision at an intersection after first damaging the cars at an offsite location.
- “Swoop and Squat” – intentional real collisions, followed by fraudulent injury claims.
“Staged auto accidents are no accident, and they are not victimless crimes,” said Mike Sheely, Allstate Field Vice President, Florida Region. “It costs law enforcement and insurance companies millions of dollars every year to investigate and prosecute these crimes. They endanger lives and drive up insurance costs for everyone.”
CFO Sink’s Division of Insurance Fraud made over 830 insurance fraud-related arrests in the last fiscal year, and investigates various forms of insurance fraud relating to health, life, auto, property and workers’ compensation insurance policies.
Depending on the estimated loss amount, the Department of Financial Services will pay up to $25,000 for information directly leading to an arrest and conviction. Anyone with information about this or any other suspected insurance fraud is asked to call CFO Sink’s Fraud Fighters Hotline at 1-800-378-0445 or visit www.MyFloridaCFO.com/fraud.