New York City Turns Up Heat on Auto Insurance Fraud

December 28, 2004

The latest tools in surveillance technology — “Joey and “Whisper” – have joined the fight against no-fault insurance fraud in New York City, according to the National Insurance Crime Bureau.

AutoOne Insurance Company of Melville, N.Y., a Limited Assignment Distribution (LAD) servicing carrier, has donated two recording and monitoring devices to the NICB for use by detectives in the New York City Police Department.

The devices will be deployed in undercover investigations of medical mills and other organized criminal operations engaged in insurance fraud in New York City, according to NICB.

One device, named “Whisper”, secretly records conversations, while the other, named “Joey”, records and monitors conversations up to one mile away. Both devices are the size of a stick of gum.

“These new tools will help the NICB and the industry combat the criminal activities of sham medical clinics, corrupt medical professionals, attorneys and others who are ripping off the no-fault insurance system in New York,” said Robert Bryant, president and chief executive officer of NICB. “We commend AutoOne for its valuable contribution to the fight against fraud.”

Insurance fraud in New York’s no-fault system has reportedly created a “fraud tax” on auto premiums of $1 million per day.

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