State officials and law enforcement in Michigan are sending a strong message to those who provide fraudulent auto coverage and the drivers who purchase their policies.

On Monday, Secretary of State Ruth Johnson announced an initiative for which her office will work with the Michigan state police, local prosecutors and the insurance industry to aggressively ferret out scammers. In forming the collaboration, Johnson hopes to quell the rising incidence of auto insurance fraud in recent years.

The initiative could perhaps not come at a better time. Last year, Johnson's office began receiving digitized insurance reports for the first time, and the insight into the extent of the problem can only be described as astounding. During a press conference, Johnson reported that a one-day snapshot (below right) of 3,400 auto registration renewals using paper insurance certificates showed that 16 percent—or more than 500—were bogus.

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