Exposing the Epidemic of Workers’ Compensation Fraud in New York: A Call to Action for Lawmakers
A recent ABC News investigation has brought to light a disturbing trend in New York's construction industry: the staging of workplace accidents to fraudulently claim workers' compensation benefits. These orchestrated incidents not only undermine the integrity of the workers' compensation system but also impose significant financial burdens on businesses and taxpayers.
The ABC News report highlights how some individuals are deliberately faking injuries on construction sites to secure substantial insurance payouts. Such fraudulent activities are not isolated incidents but part of a broader pattern affecting the state's economy and the credibility of legitimate claims. Watch the coverage below:
Workers' compensation fraud, particularly through staged construction site accidents, poses a significant threat to New York's economy and the well-being of its workforce. It is imperative for lawmakers in Albany to prioritize the passage of S.5231/A.3800 to fortify the state's defenses against such fraudulent schemes. By doing so, they will uphold the principles of justice and ensure that the workers' compensation system serves its intended purpose: to support genuinely injured workers without being exploited by deceitful practices.
For more information on the proposed legislation, visit the New York State Senate's official page for S.5231 and the Assembly's page for A.3800.
Katersky, A. (2025, April 9). Insurance fraud concerns over alleged staged workplace accidents [Video]. ABC News. https://abcnews.go.com/US/video/insurance-fraud-concerns-alleged-staged-workplace-accidents-120113160