Between one and three billion dollars. That’s how much the California Department of Insurance estimates that fraud costs the California workers’ compensation system each year. Fraud hurts everyone by driving up rates and contributing to higher consumer prices. Our Special Investigation Unit (SIU) works hard to help maintain the integrity of the state’s workers’ compensation system and level the playing field for all California businesses.

Fighting Fraud is an Ongoing Effort

The SIU team completes regular training sessions to stay up on current and emerging trends in the industry. They understand that early detection, collaboration, and continuing education are critical components in fighting fraud. Being closely aligned with the Anti-Fraud Alliance is one way they remain vigilant in their efforts.

Anti-Fraud Alliance President and State Fund Senior Vice President of Special Investigations, Jay Bobrowsky, delivered opening remarks and welcomed attendees at the annual Anti-Fraud Conference held in Monterey April 10 through 12. Jay said, “It’s crucial that all anti-fraud stakeholders keep current on the fraud trends, investigation techniques and strategies and collaborate to help spot and stop fraud.”

Members of the anti-fraud community, including investigators, insurance company claims personnel, prosecutors, and peace officers gathered for two days of classes, presentations, and discussions.

State Fund President and CEO, Vern Steiner, led a presentation where he provided a senior management perspective on special investigations and anti-fraud programs. He believes that State Fund’s Special Investigation Unit deters fraud, helps reduce unnecessary costs in the system, and ensures that honest employers and workers get more value out of the workers’ compensation system.

About the Anti-Fraud Conference

The Anti-Fraud Conference is a joint presentation by the Anti-Fraud Alliance, the California Department of Insurance (CDI), the California District Attorneys Association (CDAA), the National Insurance Crime Bureau (NICB), and the Coalition Against Insurance Fraud (CAIF).

Subjects ranged from standards like wage theft in the construction industry and provider fraud, to new trends like deepfake insurance fraud and “pig butchering.” The grimly named new trend is a type of online investment scheme where scammers use fake online personas to lure victims into fraudulent investments, named for the practice of fattening up pigs before slaughter.

For more information on our continued anti-fraud efforts, see how we fight fraud.