Bogus payments are popping up all over the state.
The California Insurance Department has announced that residents of the state are receiving fake checks that have been printed under the name of the department, some of which have a forged signature of Commissioner Dave Jones.
False payments in varying amounts are being received but are not really from the CDI.
So far, the fake checks have been for amounts of up to $5,000, and are being sent with an explanation that the California Insurance Department is sending a “refund” or a “payment” to the individual or household.
According to California insurance officials, however, the department does not issue this type of check. Their statement claimed specifically that “The department does not issue checks such as these and is warning consumers and businesses to be alert if they are presented with a check of this type.” They are therefore cautioning businesses and consumers to be on alert and not trust any such document that they might receive.
California insurance consumers are now among those in six total states with this problem.
This state, and the five others, have been receiving checks that are usually within the range of $2,000 to $5,000, and that are nowhere near genuine. Recipients of this type of suspicious check, payment, or refund, are being requested to contact the California Insurance Department at (909) 919-2200, to advise them of the fraudulent document or to find information regarding the validity of a check or any other piece of information that they might find questionable that they have received under the CDI’s name.
California insurance spokesperson from the department, Dave Althausen, said that the CDI has yet to discover why the checks are being circulated, who is behind it, or what they are hoping to gain through this fraudulent exercise. He did, however, explain that the California Highway Patrol is currently investigating the case and are hoping to put an end to the false checks as well as to discover the story behind them.
Most of the California insurance checks that have been received in the state have been in the southern half of the state.