6.6 Billion KRW Fraud Through Staged Traffic Accident... 89 Members of Insurance Fraud Ring Arrested

[Asia Economy Reporter Gong Byung-sun] A group of 89 people involved in insurance fraud who embezzled 660 million won through staged traffic accidents for over a year have been arrested by the police.

On the 29th, the Jongam Police Station in Seoul announced that they had apprehended 89 individuals suspected of deliberately causing traffic accidents to commit insurance fraud. Among them, five key figures, including the mastermind who planned and instigated the crimes, were detained.

The five, including Jang, who planned the crimes, are accused of recruiting people they met at gambling venues and other places to orchestrate staged traffic accidents. A total of 164 people were mobilized by them.

Jang and others used their own cars and rental vehicles to deliberately cause traffic accidents targeting vehicles in Seoul, Gyeonggi, Incheon, and Chungnam areas. They then hospitalized pre-conspired individuals to pose as traffic accident victims and claimed insurance money through such means. The suspects testified that they systematically divided roles among those who planned and supervised the crimes, those who managed the accidents and drove the vehicles, and those who provided names for insurance claims.

From December 2018 to June 2020, they deliberately caused 37 traffic accidents. Seven insurance companies paid them a total of 660 million won for medical expenses, vehicle repair costs, and settlements.

A police official stated, "Insurance fraud worsens the financial condition of insurance companies, leading to increased insurance premiums and ultimately harming ordinary citizens." He added, "The National Police Agency continues special crackdowns on insurance fraud crimes to eradicate them."