As fears grow that economic conditions could spur fraud, a Florida official reminded the public that the state will reward a $25,000 bounty to anyone who turns in participants in an auto accident scam.
Alex Sink, the Florida chief financial officer who oversees the Department of Financial Services and Division of Insurance Fraud, said the department will pay a reward of up to $25,000 to anyone who provides information that leads to arrest and conviction.
The CFO's office said that since the inception of the reward program in 1999, $201,000 has been paid out, more than half of that for reported personal injury protection (PIP) fraud schemes involving $10.5 million in potential insurance losses.
"If you are approached to participate in a staged accident, think before you act, and then call us," said Ms. Sink. "Fraud drives up the cost of insurance for all of us, and Florida's families don't need any extra financial burdens."
She added that the reward is much more than "you could ever make in one of these dangerous schemes."
Conviction for insurance fraud can mean a minimum of two-years in prison.
To report insurance fraud, Florida residents should call (800) 378-0445, out-of-state residents should call (850) 413-3261, or log onto https://secure.fldfs.com/fraud/nonIndustryRSF.asp.
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