New York investigators uncovered more than $1.9 million in workers’ compensation fraud last year, with arrests rising sharply as officials continued targeting abuse across the system.
The Office of the New York State Workers’ Compensation Fraud Inspector General released its 2025 annual report Tuesday, detailing 22 arrests tied to fraud cases — an increase of more than 50% statewide — along with expanded enforcement and outreach efforts.
Investigators received 1,520 complaints in 2025, alleging fraud by claimants, employers, and medical providers. Officials said more than $1.7 million was recovered through restitution, fines, and court-ordered payments.
A significant portion of the agency’s work focused on ongoing abuse within the Department of Corrections and Community Supervision. Six of the arrests last year involved DOCCS employees accused of fraudulently obtaining workers’ compensation benefits, according to the report.
Investigators said those cases reflect broader structural issues that have persisted despite prior recommendations for reform. Officials indicated additional investigations tied to DOCCS are ongoing.
Beyond those cases, the report outlines a range of fraud schemes uncovered across the state, including individuals collecting benefits while working, employers failing to carry required insurance or misclassifying workers, and medical providers engaged in long-term fraud operations.
State officials said many cases involve complex schemes requiring coordination among multiple agencies, underscoring the need for continued oversight and enforcement.
Inspector General Lucy Lang said protecting the workers’ compensation system requires both accountability and public engagement, calling it a critical resource for injured workers across the state.
The report also highlights expanded training and outreach efforts aimed at improving fraud detection and encouraging reporting, with officials saying thousands of stakeholders were reached through those initiatives.
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