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DIR Anti-Fraud Unit Cleans Up California Workers’ Comp Fraud

August 26, 20254 min read
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When a system meant to support injured workers is abused, it doesn’t just hurt the state—it hurts businesses, taxpayers, and the people it was built to protect. That’s why California’s Division of Workers’ Compensation (DWC) launched a serious crackdown. With its Anti-Fraud Unit and help from private tools like CheckMyCert.org fraud tools, California is stepping up workers’ compensation enforcement like never before.

Safety, Accountability, and Compliance

The Department of Industrial Relations (DIR) created its Anti-Fraud Unit to clean up the system. This team works alongside district attorneys, law enforcement, the Attorney General, and community-based organizations to identify and remove dishonest players. Their job is to track down medical providers, staffing agencies, and lawyers who commit fraud and abuses of the workers’ comp system.

Many of these cases involve lien fraud in compensation cases, where fake or overpriced claims drain the system. DIR uses Clean-Up Legislation and tools like the Medical-Legal Fee Schedule and Pharmaceutical Fee Schedule to tighten controls and ensure that only qualified, honest providers get paid.

And yes, most of this work starts in the heart of the compensation fraud unit in Sacramento, where real investigations lead to real results.

How DIR Removes Corrupt Providers from the System

DIR detection of corrupt providers

Here’s how DIR removes corrupt providers from the system:

  • Flags suspicious medical liens and invalid disability ratings

  • Uses the Medical Treatment Utilization Schedule to evaluate the need for care

  • Applies the Injury and Illness Prevention Program to reduce industrial injuries

  • Investigates scams like billing for occupational illnesses that never occurred

  • Works with the State Bar of California to review misconduct by legal professionals

DIR also addresses Wage Theft, Unemployment Benefits fraud, and construction industry violations by working with the Contractors State License Board (CSLB) and Employment Development Department (EDD).

Why Businesses Must Stay Alert

If you hire workers through a staffing agency, it’s your job to make sure that agency has valid workers' compensation insurance. If they don't, your business could be held responsible for everything—from temporary disability payments to long-term state disability insurance claims. That’s where CheckMyCert.org becomes your best ally.

Their fraud prevention tools allow you to upload a workers' compensation claim form or Certificate of Insurance (COI) and get it verified—for free. No calls. No spam. No sales. Just real-time protection for your company.

How CheckMyCert.org Stands Out

You might think your staffing agency is covered, but some agencies commit piggybacking, which is like using someone else’s insurance card. That’s illegal. It’s the kind of scheme the State of California Department of Justice is now cracking down on.

With CheckMyCert.org fraud tools, you can catch this before it costs you. You’ll also protect your team—because let’s face it, health and safety matters. If something goes wrong on-site and there's no valid insurance, the medical bills, work restrictions, and recovery support fall on you.

And if you think you’ll just file a Consumer Complaint later, it might be too late.

From Wildfire Smoke to Wage Theft

wildfire to smoke wage theft

Fraud isn’t the only danger. California employers must also follow strict safety laws, including Cal/OSHA Guidance on Heat Hazards and Worker Protection from Wildfire-Smoke—especially during fire season.

There are also resources like the Active Shooter Fact Sheet, School Employee COVID-19 Fact Sheet, and Workplace Wellness Programs, all designed to help employers stay compliant and protect staff.

And don’t overlook scams aimed at your business—things like fake insurance brokers, immigration consultants offering false legal help, or even unscrupulous contractors promising to get around progress payment restrictions.

The Role of the Public—and You

The DIR and regulating agencies can't do it all alone. That’s why tools like CheckMyCert.org are critical. You can use their site to report fraud, file a Complaint Against Business form, or just get email updates about industry bulletins, public meeting notices, or issues like BSA/AML Violations and Wise US, Inc. alerts.

Don’t toss important mail as junk mail—and if you see shady practices at your job site, report it. You may be protecting someone’s life—or saving your business.


Fraud Hurts Everyone—But Prevention Is Free

With agencies like the DIR, district attorneys, and the compensation fraud unit in Sacramento working behind the scenes, California is finally holding fraudsters accountable. But workers’ compensation enforcement only works when business owners care enough to act.

Want peace of mind? Upload your agency’s COI to CheckMyCert.org and make sure the people you hire aren’t putting your company at risk.

Because when it comes to injured workers, health and safety, and doing things the right way—there are no shortcuts.

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