Deliberate Crashes, Pocketed Insurance Payouts... Police Arrest 911 Insurance-Fraud Suspects

[Financial News] About 900 suspects accused of insurance fraud were arrested by police for deliberately causing traffic accidents or falsifying accident details to collect insurance payouts. Losses exceeded 7.5 billion won.
The National Office of Investigation said on the 27th that, after conducting an intensive investigation into traffic accident insurance fraud for about four months, from June 15 to September 30, it uncovered 2,045 cases and arrested 911 people. Twelve were taken into custody, and confirmed losses totaled 7,524,620,000 won.
By type of offense, deliberate crashes in which offenders staged incidents to look accidental and caused actual collisions accounted for 1,559 cases, or 76.2% of the total. The most common were deliberate crashes targeting vehicles changing lanes, with 600 cases (29.3%).
These were followed by falsified accident details, with 336 cases (16.4%); accidents plotted by the at-fault party and the victim, with 319 (15.6%); and self-injury incidents, including the so-called “wrist-tapping” scam, with 209 (10.3%).
The suspects’ age profiles varied depending on the method used. Among those involved in deliberate crashes, 263 were in their 20s (28.9%) and 182 were in their 30s (20.0%), together accounting for about half of all those arrested. By contrast, among false-accident cases involving driver substitution or falsified accident details, participation was relatively higher among people in their 30s, at 83 (9.1%), and those in their 40s, at 87 (9.5%).
The police investigation uncovered not only cases in which acquaintances, such as local seniors and juniors, conspired to commit crimes, but also organized insurance fraud in which accomplices were recruited through social networking services (SNS). The method involved posting online messages such as “People who want to make easy money” and “Short-term, high-paying part-time work” to lure people into taking part in the crimes.
Daegu Metropolitan Police Agency arrested 59 people who had recruited accomplices through SNS and filed false traffic accident claims, swindling about 300 million won in insurance payouts over 60 occasions from February 2023 through September last year.
Gyeongnam Provincial Police Agency arrested 22 people on suspicion of deliberately causing crashes involving vehicles violating traffic laws or suspected of drunk driving in and around Geoje from January 2022 through April 2024, and fraudulently obtaining and extorting about 198 million won from insurers and drivers over 14 occasions. Three of them were taken into custody.
Jeonnam Provincial Police Agency apprehended 11 people, including members of organized crime groups, on suspicion of deliberately causing 11 crashes targeting lane-changing vehicles in and around Mokpo and swindling about 80 million won in insurance payouts.
Gyeonggi Northern Provincial Police Agency also arrested three people and took one into custody on suspicion of deliberately colliding with lane-changing vehicles in and around Guri and Namyangju and fraudulently obtaining about 240 million won in insurance payouts over 29 occasions.
The so-called “wrist-tapping” scam, in which pedestrians deliberately jump in front of vehicles and demand money or valuables, was also uncovered. Bupyeong Police Station in Incheon took one suspect into custody for swindling drivers out of about 20 million won in 30 incidents from July through September in the Bupyeong area by jumping in front of vehicles turning right.
Chungnam Provincial Police Agency arrested 24 people on suspicion of deliberately causing crashes targeting lane-changing vehicles in the Cheonan and Asan areas, then undergoing excessive inpatient treatment to fraudulently obtain about 180 million won in insurance payouts over 35 occasions.
Police plan to continue ongoing crackdowns on traffic accident insurance fraud. Traffic investigation teams at local police stations will actively gather signs of suspected insurance fraud while handling ordinary traffic accidents. Traffic crime investigation teams at metropolitan and provincial police agencies will conduct investigations by analyzing suspected cases across broader regions, SNS posts seeking accomplices, insurance payment records and other information.
Hong Seok-gi, head of the National Office of Investigation, said, “We will focus our investigative capabilities on eradicating traffic accident insurance fraud, a serious crime that threatens the safety of people’s lives and physical well-being and increases their financial burden. At the same time, we will strengthen victim-protection measures for those identified through investigations, including the cancellation of administrative dispositions and refunds of premium surcharges.”

[email protected] Kim Ye-ji Reporter