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On this episode of the Deep Dive we’re breaking down a piece of proposed legislation that could mark a turning point in New York’s fight against staged accidents and fabricated injury claims — the FRAUD Act.

As insurance premiums continue to climb, lawmakers are zeroing in on one of the most persistent cost drivers: organized construction site schemes and orchestrated motor vehicle collisions designed to exploit the system. The FRAUD Act would elevate intentional fabrication of these incidents to a Class E felony, impose restitution and civil penalties, and temporarily bar convicted individuals from collecting insurance benefits.

But this bill goes beyond punishment. It signals a broader shift toward accountability — requiring greater cooperation between insurers and law enforcement and reinforcing that fraud is not a business strategy, it’s a crime.

In this episode, we’ll examine what the legislation actually does, what it means for policyholders and employers, and whether it has the teeth to meaningfully impact New York’s liability landscape.

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