"Looking for Attackers and Defenders" High-Paying Part-Time Jobs on SNS... As Suspected, It Was Insurance Fraud

Financial Supervisory Service Uncovers 182 Suspects Through Special Investigation
Staged Accidents by Assigning Roles, Then Filing Claims With Insurers
Automobile Insurance Fraud Detected Last Year Totals Approximately 570 Billion Won

Recently, advertisements recruiting participants for intentional automobile accidents have surged, especially on social networking services (SNS), prompting the Financial Supervisory Service to urge the public to exercise caution.

According to the Financial Supervisory Service on November 20, recruiters have been posting coded advertisements on platforms such as Naver Band and Daum Cafe, disclosing their Telegram IDs to attract conspirators. These posts use slang related to insurance fraud, such as ㅅㅂ (defender/victim), ㄱㄱ (attacker/perpetrator), ㅂㅎ (insurance), and ㅌㄹ (Telegram).

Last year, the amount detected for automobile insurance fraud, including intentional traffic accidents, reached approximately 570 billion won, accounting for half of all insurance fraud cases. Recently, automobile insurance fraud involving intentional traffic accidents has been on the rise every year. The Asia Business Daily

The recruiters, when contacted via Telegram, entice individuals by claiming, "You can receive a substantial settlement even from a minor accident," "The insurance company will handle everything," and "There are actual cases where people have made tens of millions of won." They then assign roles to the conspirators (perpetrator, victim, or passenger) and agree on methods for staging accidents, such as sudden lane changes, intersection collisions, or rear-end crashes. Those who own vehicles are assigned as "attackers" or "defenders," while those without vehicles participate as "passengers."

They require conspirators to provide photos of their vehicle registration and driver's license in advance to secure personal information. After the staged accident, they claim settlement payments for bodily injury and property damage (unrepaired) from the insurance company and transfer the promised amount to the conspirators. The Financial Supervisory Service warned that the recruitment of participants for intentional automobile accidents via SNS and Telegram primarily targets economically vulnerable individuals in their 20s and 30s, and that even minimal involvement constitutes insurance fraud and is subject to prosecution.

According to the revised "Special Act on the Prevention of Insurance Fraud" amended last August, the act of recruiting conspirators through SNS and other means is also punishable as insurance fraud, with penalties of up to 10 years imprisonment or a fine of up to 50 million won. The Asia Business Daily

Furthermore, according to the revised "Special Act on Insurance Fraud Prevention" enacted in August 2024, recruiting conspirators through SNS and other means is punishable as insurance fraud, with penalties of up to 10 years imprisonment or a fine of up to 50 million won. The Financial Supervisory Service recently worked with the Seoul Metropolitan Police Agency and the Rent-a-Car Mutual Aid Association to apprehend 182 recruiters and conspirators, confirming that they had defrauded insurance companies of 2.3 billion won. A representative from the Financial Supervisory Service stated, "Automobile insurance fraud is a representative crime that undermines trust in the insurance system and leads to higher premiums for honest citizens. We will continue to respond strictly in cooperation with related agencies."

Meanwhile, last year, the amount detected for automobile insurance fraud, including intentional traffic accidents, reached approximately 570 billion won, accounting for half of all insurance fraud cases. Recently, automobile insurance fraud involving intentional traffic accidents has been increasing annually. The detected amount of automobile insurance fraud was 470.5 billion won in 2022, 547.6 billion won in 2023, and 570.4 billion won in 2024. The amount detected in 2024 accounted for 49.6% of the total insurance fraud detected that year, which was 1.1502 trillion won. Among automobile insurance fraud cases, about 30% involved intentional traffic accidents that made innocent citizens either victims or perpetrators. Such intentional accidents also result in higher automobile insurance premiums, thereby shifting the burden onto other financial consumers.