Hochul targets insurance fraud as costs rise for drivers and first responders
ALBANY, N.Y. (WNYT)- Drivers across New York are paying some of the highest car insurance rates in the country and state leaders say fraud is a major reason why.
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Governor Kathy Hochul is now pushing a proposal aimed at cracking down on insurance fraud and lowering costs, as new concerns emerge about how the issue is also impacting first responders.
Speaking from the Westmere Volunteer Fire Department in Guilderland, Hochul outlined a plan that would make it easier to prosecute staged accidents, increase penalties for fraud, and reform state laws to reduce abuse within the system. The proposal is part of ongoing state budget negotiations.
“Staged accidents” — crashes that are intentionally caused to collect insurance payouts — have…
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.