"Intact Items, Insurance Fraudsters Caught After Theft Report in Travel Insurance"

Source: Financial Supervisory Service

[Asia Economy Reporter Changhwan Lee] The Financial Supervisory Service (FSS) announced on the 9th that it has identified suspects involved in travel insurance fraud and has requested an investigation.

The FSS revealed on the same day that it identified 20 suspects who fraudulently received insurance payouts by claiming theft or damage of personal belongings during travel under travel insurance policies.

The number of fraud cases involving these suspects amounts to 191, with a total amount of approximately 120 million KRW.

The suspects used a method of entering into travel insurance contracts with different insurance companies for each trip and then repeatedly claiming insurance payouts for personal belongings reported as total loss or stolen.

Some suspects submitted manipulated estimates or incomplete receipts missing issue dates when filing insurance claims.

Additionally, cases were confirmed where high-value items (such as bags and wallets) purchased at duty-free shops were reported as stolen to receive insurance payouts and then sold on secondhand trading sites.

There were also false claims exploiting family relationships. Family members entered into travel insurance contracts with different insurance companies and each claimed insurance payouts for the same personal belongings, or one family member filed claims again for stolen or totally lost belongings for which another family member had already received insurance payouts during a previous trip.

An FSS official emphasized, "Cases of insurance fraud through document manipulation related to theft or damage of personal belongings, inclusion of unrelated items, and false or duplicate claims for the same items continue to occur," adding, "Since the amounts involved in travel insurance fraud are relatively small, there is a risk that people may not recognize it as a serious crime and may be easily exposed to insurance fraud."

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