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June 22, 2025 15 mins
Original Air Date: June 22, 2025

Frank Sztuk of  The New York Alliance Against Insurance Fraud says insurance fraud costs every New Yorker 900 dollars a year. Among the scams: rear end car crashes!
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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to Sunstein Sessions on iHeartRadio, Conversations about issues that matter.
Here's your host, three time Grasie Award winner, Shelley Sunstein.

Speaker 2 (00:10):
And we're going to talk about something. I'm going to
mention what it's about, and you're going to say why
does this impact me? And I'll tell you what front light.
It impacts you. We're talking about insurance fraud. It impacts
you because it costs every New Yorker around nine hundred
dollars a year. Now, who has nine hundred dollars a
year to throw out? I would venture to say, no one.

(00:32):
So joining me this morning as he does every year,
Frank Stuk. He is from the New York Alliance Against
Insurance Fraud and every year your group has a new theme.
So Frank, what is the theme this year? What are
we tackling this year?

Speaker 3 (00:50):
Yeah?

Speaker 4 (00:50):
The theme this year, Shelly, Well, first of all, thanks
for having me. Secondly, the thing this year is that
everyone gets burned by insurance fraud insurance fraud tax. So
you know you you mentioned a very important thing, and
that's the cost of every of insurance fraud on every
individual in the state of New York. So one thing

(01:11):
I want to point out is that it's not just
in the cost of insurance, it's in the cost.

Speaker 3 (01:16):
Of all goods and services.

Speaker 4 (01:19):
So that that nine hundred and twenty dollars number that
we talk about in New York, when you look at that,
take an average family of say mother, father to kids,
that's over thirty six hundred and eighty dollars a year
that these people can ill afford to just waste away
because of insurance fraud. So it really does impact everybody.

Speaker 5 (01:43):
So what is your theme this year? What are you tackling?

Speaker 4 (01:46):
So when we look at it, everyone gets burned by fraud.

Speaker 3 (01:49):
The whole idea is to get people to.

Speaker 4 (01:51):
Understand the overall impact of insurance fraud on each of
our daily lives. You know, the I mean it's certainly
when you look at it from the perspective of cost
of insurance. You know, the your your insurance bill is
is that much more expensive because people are gaming this system.
You know, you've got you know when you I mean

(02:11):
something as simple as the cost of your cup of
coffee in the morning, that cup of coffee in the
morning is a little more expensive.

Speaker 3 (02:19):
Because of insurance fraud.

Speaker 4 (02:20):
Because every business has to have insurance, and every business
who has insurance has to pay, you know, a little
bit of money to cover the losses from insurance fraud.
So it really is impacting. So when we talk about
everyone getting burned, it truly is an element that everybody

(02:42):
has to understand that fraud costs everybody. You know, and
look at if you go back to our main tagline,
insurance fraud the crime you pay for and you know,
there's there's a misconception on a lot of on a
part of a lot of people that insurance for it
only costs you know, big companies.

Speaker 3 (03:03):
Well that's not true.

Speaker 4 (03:04):
It gets it gets filtered down to every person in
the state of New York. And that's everybody, mothers, fathers, grandparents, children,
everybody across the board, Shelley.

Speaker 2 (03:16):
So let's break it down and talk about the different types.
I think the first thing that comes to mind is
when it comes to somebody who is ripping off their
company for health reasons.

Speaker 4 (03:32):
All right, So the first thing you want to look
at is, you know, when we talk about insurance fraud
as it relates to healthcare, there are a lot of
unscrupulous professionals out there who are stealing from the system.
And you know, one of the things that they'll do is,
for instance, they'll build for services not rendered. They'll they'll

(03:55):
do what's called unbundling their charge for every little aspect
of your visit versus you know, a a an overall
charge for when you go to the doctor. You know,
we've got we've got people who are creating accidents all
right for the purpose of going to that doctor to
pump up an insurance claim. So you know, uh, and

(04:18):
one of the things you know, from a health insurance perspective.

Speaker 3 (04:21):
That we we're.

Speaker 4 (04:22):
Letting people know this year's part of our theme is
that there's something that you can do about it. So
when we go to a doctor, you know, you you
will generally get sent what's called an EOB or an
explanation of benefits, right you know, probably comes maybe a week,
week and a half, two weeks after you go to
the doctor. What we're trying to get people to do

(04:45):
is look at it, read it.

Speaker 3 (04:48):
See if what.

Speaker 4 (04:49):
You're being built or what your insurance company is being
built for is the service that you received.

Speaker 3 (04:56):
So if you.

Speaker 4 (04:56):
Get an EOB for you know, our regular doctor visit,
take a look at it and make sure that the
charges on that bill pertain to the services that that
that you got when you were at the doctor. There's
a lot of there's a lot of professionals and I
use that word on scrupulous, and I like that word
when I talk about freud because we all we have

(05:18):
to understand that the vast majority of the professionals that
we deal with, whether they're doctors, lawyers, insurance folks, are
all honest, hardworking people. But there's a small group that
are that are looking to benefit themselves by committing fraud.
So these are the these are the bad doctors and
professionals that we're talking about. They even go as far

(05:41):
shelley as to perform unnecessary surgery on people. And so
when you look at that, and it's all for the
purpose of billing, but when you look at that, that's
putting people in physical danger. And you know, we're seeing
a lot of that in that in Downstate. When we

(06:01):
look at construction accidents where people are going to the doctor,
they're submitting themselves the surgeries that they don't need and
it's putting them at risk. So from a healthcare standpoint,
that's a big part of the fraud issue that we're
looking at.

Speaker 2 (06:15):
Now that's the first that I've heard of that how
are you supposed to safeguard against that happening to you?

Speaker 4 (06:23):
Well, you you, First of all, you've got to you've
got to understand what your doctor's telling you, Okay, And
don't be afraid to go for a second opinion. If
a doctor's telling you that you need surgery for something
that you may you may seem to think is relatively minor,
talk to another doctor. Your insurance company will cover that,

(06:44):
all right, get a second opinion. Don't put yourself at
risk by by submitting yourself for unnecessary surgery. Question it,
question the doctor. Absolutely.

Speaker 2 (06:56):
I am speaking with Frank Stock of the New York
Alone against insurance fraud. Insurance fraud costs every New Yorkers
more than nine hundred dollars a year. One of the
things I've heard about in recent years are fake accidents.

Speaker 5 (07:16):
So talk about that, Frank.

Speaker 3 (07:18):
Yeah.

Speaker 4 (07:19):
Look, Shelly, I've been in this business now since nineteen
eighty one. I started the fraud unit at an insurance
company back in eighty one, and back in that day,
staged accidents were pretty prevalent, and a staged accident very
simply is a planned accident. So you know people people

(07:39):
will target drivers I try to cause an accident again
for the purpose of creating a claim. A perfect example
of this occurred probably about six or seven months ago,
and it was on the national news.

Speaker 3 (07:54):
I think you probably saw the clip of.

Speaker 4 (07:57):
A woman who was driving in New York on the
belt part and she was in the left lane driving
mining her own business. Now, the interesting thing is she
had a dash camera, all right, So as she's driving,
a car cuts her off, pulls in front of her,
slams on their brakes. Now, this young lady was she

(08:18):
understood what was going on. She stopped and didn't hit
the car that tried to cause the accident. Well, within
a second, you see the backup lights on that car
go on and the car forcefully rams themselves into this driver,
now all on camera because she had the dash can.

(08:39):
So within a few seconds you see through the window
the driver switch over to the passenger seat. Then people
started getting out of the car holding their neck. And
then within within another probably ten or twelve seconds, another
car pulls up in front of that car and the

(09:00):
driver gets out of the passenger seat, jumps in that
car and takes off. What it was was a staged accident.
It was an orchestrated accident.

Speaker 2 (09:09):
And for those of us who don't have one of
these cameras on our car, how are you supposed to
prove this.

Speaker 3 (09:16):
H You're you're absolutely right.

Speaker 4 (09:18):
That becomes the problem because you know the rule of
Thumbshelley is if you hit somebody from the rear, you're
you're guilty.

Speaker 3 (09:25):
Yeah, all right, So there's a couple of ways.

Speaker 4 (09:28):
And where as I said, when I first started, this
was pretty prevalent, and it kind of stopped for a while,
or it slowed down for a while, But now we're
seeing it again, and we're seeing it in in large
numbers on you know, around the you know, the whole
the whole state of New York, not just downstate. So
the first thing that we're doing within our campaign this

(09:50):
year when we talk about, you know, don't get burned
by fraud, is be aware of your surroundings, don't tailgate.
And that's something thing that you know, and I do.
I do a lot of public speaking, and it's one
when I speak to public groups, I talk about this
very emphatically. Don't get up on somebody's bumper for the

(10:12):
simple reason that if that person that your tail dating is.

Speaker 3 (10:16):
Somebody who wants to cause an accident.

Speaker 4 (10:18):
They're going to be watching their rear view mirror and
look for when you kind of look away for a second,
they're going to slam on their brakes and then you're
going to hit them. That's a staged accident. That's a
caused accident.

Speaker 2 (10:32):
And you know what I'm reading into this, Frank, don't
be driving in the left lane unless you're passing. Exactly
of people annoy me to begin with, But this is
a perfect reason why you shouldn't, you know, because they're
not necessarily passing, they're just tooling along.

Speaker 5 (10:52):
And you could be a victim.

Speaker 3 (10:55):
You absolutely could, You absolutely could.

Speaker 4 (10:57):
And then there's a you know, there was and I
think we've talked about this case before, Shelley. In two
thousand and four, a grandmother by the name of Alice
Ross was driving again in Long Island and she was
a victim of a staged accident. Alice was killed in
this accident. She was targeted by these scammers. Well, the
State of New York Institute of what's called.

Speaker 6 (11:19):
Alice's Law, which goes after the stages of these accidents,
all right, and it goes after him criminally, And the
legislator has just taken up strengthening Alice's law by not
only not only holding the people who were in physically
in the car responsible, but for the overall planners of

(11:41):
these accidents too.

Speaker 4 (11:42):
So the state recognizes that this is a huge problem
and they've taken steps to try to impact it.

Speaker 2 (11:49):
You know, I just thought of something, Frank, and I'm sure,
Well I shouldn't say I'm sure, but I.

Speaker 5 (11:54):
Doubt that this exists.

Speaker 2 (11:56):
That there is a way for you to make more
money turning in people who are guilty of insurance fraud
because this would enable their cohorts to turn them in
or somebody who and right does does the law provide
for that?

Speaker 5 (12:15):
Yet?

Speaker 4 (12:16):
There there there is some some level of payment for
people who are are not afraid to come forward and
give information on a on a.

Speaker 3 (12:29):
Group of fraudsters like that.

Speaker 4 (12:31):
So that's something that the State of New York, through
the New York Insurance Fraud Division, deals with.

Speaker 3 (12:37):
So that the payment.

Speaker 2 (12:39):
Was significant, I think you would have more people who
would be looking for this, right, I mean.

Speaker 3 (12:45):
It's just turning turning on their buddies.

Speaker 2 (12:48):
Yeah, It's just an idea that popped in my head
because frankly, all this is you know, there's.

Speaker 5 (12:54):
A lot of work on the on the fraudster's part.

Speaker 4 (12:58):
Right it apps is, but unfortunately it pays off for
a lot of people. And that's you know, that's the
main reason that you know, it's one of the main
reasons of the Alliance was created to alert people to
the problem of fraud and what they can do about it.

Speaker 3 (13:14):
So going on.

Speaker 4 (13:15):
That that that topic, Shelley, you know, what we're asking
people to do is if they see something, say something,
and they can contact us at the Alliance at fraudany
dot com or eight four four fraud and why, And
if they see something that appears to be fraudulent, let

(13:36):
the Alliance know and we'll take the information and we'll
report it to the proper authority on their behalf.

Speaker 3 (13:44):
And the other thing, and.

Speaker 4 (13:45):
We've talked about this with a couple other folks this year,
is you can people can do it anonymously too, Shelley.

Speaker 3 (13:50):
So if somebody doesn't.

Speaker 4 (13:51):
Want their name involved, they don't have to give their name,
but if they give us the information, we'll get it
to the State of New York and the State of
New York will do an investigation and try to get
to the bottom of these fraudulent groups that are out
there attacking people in the state of New York.

Speaker 2 (14:06):
Again, the easiest way to do that is to go
to fraudy dot com. We have less than a minute left.
What have we not talked about really quickly?

Speaker 4 (14:17):
Well, I think the main thing is the messaging that
we want to get out. So first of all, when
you look at the three different groups that are involved,
you've got victims, observers, and perpetrators. So the victims of
fraud are literally everybody in the state of New York.

Speaker 3 (14:33):
Okay, if you are.

Speaker 4 (14:35):
A victim, if you've been involved in one of these
staged accidents, let us know.

Speaker 3 (14:39):
If you see something happening, let us know.

Speaker 4 (14:43):
And if you're somebody who's a perpetrator, somebody who's committing
fraud or it's thinking about committing fraud, this is don't
do it. So if you're if you're experiencing financial stress
considering fraud, don't do it.

Speaker 3 (14:56):
It's not the right way to go.

Speaker 5 (14:57):
And again, fraudy dot com.

Speaker 1 (15:00):
You've been listening to Sunsteen sessions on iHeartRadio, a production
of New York's classic rock Q one O four point three,
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