Stop the Scams: Governor Hochul Announces Partnership Between State Police and Department of Financial Services to Crack Down on Insurance Fraud

Governor Kathy Hochul today announced that the New York State Police and Department of Financial Services will partner to crack down on insurance fraud by hosting a specialized training to further strengthen the skills of its investigators, and local law enforcement professionals across the state so they can better detect, investigate, and prosecute financial crimes, including auto insurance fraud. This partnership builds on the Governor's commitment to tackling insurance fraud and the high cost of auto insurance. The new program, developed in partnership with the New York State Department of Financial Services and prosecutors, will provide training to 250 members of law enforcement, including State Police investigators and uniformed troopers, as well as representatives from law enforcement agencies throughout New York State.

"Public safety is my number one priority. That is why I'm cracking down on fraud and deceptive practices that put New Yorkers at risk and drive up costs. New training, developed in partnership between the New York State Police and the Department of Financial Services, will provide agencies with stronger, better tools to detect, investigate, and stop fraud," Governor Hochul said. "These efforts, along with my proposals to combat insurance fraud and reduce vehicle insurance premiums, all serve one simple goal: Making New York safer and more affordable for all."

New York State Police Superintendent Steven G. James said, "This symposium will serve to enhance our statewide investigatory capacity to identify and investigate these types of crimes, often perpetrated against the most vulnerable of New Yorkers. By providing enhanced awareness and training to our members in the field, we will foster more effective partnerships with the DFS and local authorities, leading to more complex investigations, increased arrests, and a measurable reduction in fraud, directly supporting Governor Hochul's goals to lower auto insurance costs for New York residents."

New York State Department of Financial Services Acting Superintendent Kaitlin Asrow said, "Combating insurance fraud takes the full force of state government working together, which is what this partnership delivers. Governor Hochul has made clear that protecting New Yorkers from the rising cost of insurance fraud is a priority. DFS is proud to share our expertise and collaborate with State Police to turn that commitment into action."

State Police and DFS Specialized Training Symposium

The symposium, slated for July at the New York State Police Academy in Albany, will address financial crimes and multiple categories of insurance fraud, including auto insurance, along with investigations involving deceptive contractors and elder fraud. The training will feature an overview of relevant insurance fraud statutes, case studies, and practical instruction from the New York State Police BCI Financial Crimes and Special Investigation Units (SIU) on core investigative techniques.

The program builds upon an established partnership between the Division of State Police and the Department of Financial Services. The New York State Police Financial Crimes Unit, part of the Bureau of Criminal Investigation, works with the DFS Insurance Frauds Bureau to address the rise in auto insurance fraud cases, which are prevalent in New York City's five boroughs. As a result of this new training, New York State Police investigators will be positioned to better investigate cases beyond the five boroughs.

Governor Hochul's Plan to Combat Insurance Fraud, Reduce Insurance Premiums

Under Governor Hochul's leadership, New York State has been committed to combatting insurance fraud and reducing vehicle insurance premiums. Recent proposals advanced by the Governor aim to address fraudulent claims and staged accidents that have contributed to elevated auto insurance costs for New York families.

This includes:

• Taking on fraud in the system by creating new legal liability for criminals orchestrating staged accidents.
• Reinvigorating the Motor Vehicle Theft and Insurance Fraud Prevention Board to improve its efficiency in promoting the investigation and prosecution of insurance fraud across the state.
• Tasking DFS, NYSP, DMV, and DCJS and with a more proactive and coordinated approach to enforcement, including dedicated resources and staff at DFS and NYSP focused on auto insurance and ensuring coordination with law enforcement.
• Ensuring those found at fault for an accident can't sue their victims for compensation.
• Requiring insurers to offer mandatory discounts for dashcams that can help capture fraud as it's happening.
• Increasing the time insurers have to report fraud from 30 to 60 days to provide more time to investigate claims and avoid paying fraudulent ones.

"Public safety is my number one priority. That is why I'm cracking down on fraud and deceptive practices that put New Yorkers at risk and drive up costs."

New Yorkers pay some of the highest car insurance rates in the nation - more than $4,000 annually on average, nearly $1,500 above the national average. New York's crushingly high premiums are a direct result of outdated and anomalous laws that enable fraud and encourage expensive litigation, and put New York out of step with other states. Insurance carriers reported 43,811 incidents of suspected motor vehicle insurance fraud to the New York State Department of Financial Services (DFS) Insurance Frauds Bureau in 2025. This is up from 24,238 incidents of suspected motor vehicle insurance fraud in 2020, an 80 percent increase in five years.

The Insurance Information Institute has estimated that reforms that limit instances of fraud could reduce auto insurance rates by around $300 per policy, a reduction to the statewide annual rate of nearly 8 percent. Governor Hochul is taking a whole-of-government approach to crack down on auto insurance fraud, limit damages paid out to bad actors and ensure that consumers, not insurance companies, are prioritized.

The New York State Police remain committed to safeguarding New Yorkers through proactive enforcement, strategic partnerships, and continuous professional development. By increasing awareness, training, and fostering cross-agency collaboration, the New York State Police will crack down on bad actors who are driving up these costs at the expense of New Yorkers. Upon completion of the initial training session, the specialized training block will be permanently incorporated into the New York State Police BCI school curriculum for all future investigators.

Coalition Against Insurance Fraud Executive Director Michelle Rafeld said, "The Coalition Against Insurance Fraud supports Governor Kathy Hochul's comprehensive approach, recognizing that enhanced training and stronger coordination between the New York State Police and the Department of Financial Services are essential to disrupting increasingly sophisticated insurance fraud schemes. These efforts will help protect consumers and reduce the rising costs driven by fraud."

New York Insurance Association President Cassandra Anderson said, "Insurance fraud hurts honest New Yorkers, threatens safety on roadways, diminishes the quality of health care in our state and adds financial burdens to New York families. Governor Hochul's announcement represents a meaningful step forward in addressing this challenge. Specialized training and cross-agency collaboration are critical to combating insurance fraud. Expanding these efforts across law enforcement will strengthen investigative capabilities and improve coordination. By equipping investigators with the tools and training needed to identify and prosecute fraud, New York is better positioned to hold bad actors accountable. Efforts like these are essential to improving affordability in the state and protecting consumers."

Contact the Governor's Press Office