Are you saying that you'd ignore all financial incentive to protect your assets and rely on the government to protect you? We already know how well that works. It doesn't! I'm not against the AG investigating and prosecuting fraud, but I certainly don't want to set a precedent based on entrapment or put more ink on the books to grow bureaucracy.
You would have to insure your cars against theft. If you get robbed a lot, your insurance company would raise your premium.
it already works like your hypothetical scenario, so what's your point?
edit: an analogy from your point to what happened would be the government setting up a fake car rental and calling up thieves to agree to rent and steal their cars.
I'm pretty sure they do credit checks and run my license.