Builds on Governor Hochul’s Efforts to Lower Auto Insurance Costs by Tackling Fraud, Waste and Abuse That Drive Up Costs for New York Drivers
Governor Kathy Hochul today announced that a joint investigative partnership by members of the New York State Police (NYSP) and the New York State Department of Financial Services (DFS) resulted in the arrests of 16 individuals as part of ongoing and joint auto insurance fraud investigations. The joint investigation uncovered nearly $500,000 in attempted fraudulent claims across more than a dozen cases in New York City and Suffolk, Onondaga, Monroe, and Erie counties. The arrests follow major reforms enacted earlier this year by Governor Hochul as part of her…
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.