Violation of Special Act on Prevention of Insurance Fraud
Received over 300 million KRW in insurance claims 26 times
A group of individuals who deliberately caused traffic accidents while driving foreign cars in the Gangnam-gu area of Seoul and claimed billions of won in insurance money have been arrested by the police.
On the 6th, the Gangnam Police Station in Seoul announced that they had apprehended 18 people, including the ringleader Mr. A, on charges of violating the Special Act on the Prevention of Insurance Fraud. Among them, Mr. A was detained by the police.
According to the police, they are suspected of deliberately causing traffic accidents in Gangnam-gu, Seoul, and other areas from March 2019 to last June, and extorting insurance money from 11 insurance companies. The amount of insurance money they fraudulently received amounts to 330 million won.
Police investigations revealed that they were middle school classmates or neighbors from the same community. The group drove foreign cars around Nonhyeon-dong, Gangnam-gu, Seoul, and deliberately collided with vehicles attempting to change lanes to induce minor accidents. They then used the method of having all passengers hospitalized, fraudulently receiving insurance money 26 times.
A police official stated, "We plan to send this group to the prosecution around the 8th," and urged, "If you experience a traffic accident suspected to be insurance fraud, you should promptly keep the black box memory chip containing the recorded footage of the accident and report it to the nearest police station."
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