'Ghost' passengers who never got in the car claimed 500 million won insurance... Recruiting fake co-passengers, pocketing settlement money

People in their 20s committing insurance fraud are deliberately ramming vehicles that are changing lanes.
[Image source=Busan Police Agency]

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] An absurd insurance fraud occurred where a ‘ghost passenger’ who did not even get in the car claimed insurance money.

The Busan Metropolitan Police Agency arrested four people, including a man in his 20s, A, on charges of violating the Special Act on the Prevention of Insurance Fraud by deliberately causing traffic accidents, reporting the accidents under other people’s names, and receiving treatment at hospitals to collect about 500 million won in insurance money such as settlement money and repair costs.

They also announced on the 9th that they had sent 64 accomplices, including a man in his 20s, C, to the prosecution.

According to the police, A and others, along with accomplices, traveled around various parts of the country such as Busan, Seoul, Gwangju, and Daegu from November last year to September this year, committing fraud 117 times.

The gang deliberately collided with vehicles violating traffic laws, such as those changing lanes immediately after passing an intersection, or intentionally crashed into utility poles and then reported the accidents to insurance companies.

They are suspected of receiving about 500 million won in insurance money through settlement money and unrepaired repair costs by receiving outpatient treatment at Korean medicine clinics.

As the number of accidents increased, A and others changed the vehicles used in the crimes every 1 to 2 months to avoid suspicion from insurance companies and others.

They also recruited fake passengers who lent their names as passengers through SNS such as Facebook Messenger, and after the accident, submitted photos of their ID cards to insurance companies or provided personal information by phone to claim insurance money.

It was revealed that accomplices who lent their names were paid 100,000 to 300,000 won per case as a fee.

The two main culprits, including A, who were arrested, spent most of the insurance money on entertainment expenses, paying up to 10 million won for so-called ‘Mansour sets’ of alcohol at clubs and giving expensive champagne to other customers.

During the investigation of A and others, B and his group were caught for deliberately causing accidents and claiming insurance money using the same method.

The two arrested, including B, were found to have deliberately caused traffic accidents with vehicles provided by creditors in collusion with them after their debts from online gambling increased beyond their ability to repay, using the insurance money claimed to repay debts or fund gambling.

The Busan Metropolitan Police Agency recently reported that cases of young people, including university students, getting involved in insurance fraud due to the temptation of easy money are increasing, and plans to continue crackdowns to eradicate automobile insurance fraud.

This content was produced with the assistance of AI translation services.