SAN DIEGO — Billboards are being posted across San Diego, warning that insurance fraud is a felony and could lead to prison.
"It is estimated that 15 to 20% of all claims and settlements involving auto insurance are fraudulent," said Luis Mendez, Assistant Chief for Insurance Fraud and Workplace Justice with the San Diego County District Attorney’s Office.
Mendez says part of the reason for the high fraud rate is our geography.
"We are close to the border and have several military bases here and being close to the border, people get the idea they can leave cars in Mexico and not see the cars again but that's erroneous because cars are found and brought back," Mendez said.
Mendez says he's seen hundreds of cases per year.
"Military members go on deployment for many months at a time and they let their policies lapse and then return to find the car missing; something happens while the car's uninsured and they file false claims as well," he said.
False claims drive up insurance costs for everyone.
"I think it's awful and I can't believe that we can't do anything about it," Sue Slone told CBS 8.
That's the reason for the billboards and bus stop signs; thousands of people drive past them every day and the message is getting out. Prosecutors are going after fraudulent accident reports and workman's compensation claims.
Mendez said that for first time offenders, the penalty is usually a fine but for repeat customers and those involved in a conspiracy; it could put them behind bars.
"It could be prison time; the law allows up to five years prison," Mendez said.
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