Joint investigations by the New York State Department of Financial Services (DFS) and New York State Police have resulted in 16 arrests involving nearly USD 500,000 in attempted fraudulent auto insurance claims, Governor Kathy Hochul announced. The arrests involve 31 charges, including 29 felonies and two misdemeanors, across more than a dozen cases in New York City and Suffolk, Onondaga, Monroe and Erie counties. The cases include alleged staged collisions followed by medical insurance claims. In Brooklyn, a driver allegedly caused a December 2, 2025, collision, falsely blamed the other motorist and collected more than USD 16,000 in medical insurance claims. A separate alleged staged accident in the Bronx on March 18, 2026, generated more than USD 70,000 in allegedly fraudulent medical expenses. The joint task force combines State Police investigators with specialists from DFS’s Insurance Frauds Bureau. Investigations remain ongoing, with additional enforcement actions expected. The arrests follow measures enacted earlier in 2026 to strengthen enforcement and address auto insurance costs. The fiscal year 2027 enacted budget allows prosecutors to seek criminal penalties against organizers of staged accidents, not just drivers. Other provisions limit certain damages and recoveries, tighten standards for serious injury claims and strengthen oversight of insurance rates and excess insurer profits. Insurers reported 43,811 suspected motor vehicle insurance fraud incidents to DFS in 2025, up 80% over five years, with most referrals involving suspected no-fault fraud.
New York State Department of Financial Services and State Police investigations lead to 16 arrests over nearly USD 500,000 in suspected auto insurance fraud
Joint investigations by the New York State Department of Financial Services and New York State Police led to 16 arrests and 31 charges involving nearly USD 500,000 in attempted fraudulent auto insurance claims. The cases follow reforms enacted earlier in 2026 that allow criminal penalties against organizers of staged accidents and strengthen insurance oversight. Investigations continue, with further enforcement actions expected.