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 type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.