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…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.