In South Korea, police have apprehended suspects accused of deliberately causing traffic accidents with rental cars, in order to lodge payouts with insurers.
According to news platform The Chosun Daily, the Seoul Gangbuk Police Station announced that it arrested 21 people on suspicion of insurance fraud. They were also referred without detention to the Seoul Eastern District Prosecution Service.
“The suspects are accused of recruiting local juniors and others from January 2024 to November 2025, causing 43 traffic accidents and extorting KRW320m ($237,042) from insurance companies under the guise of settlement money,” the article stated.
“Most were in their early 20s, and it was confirmed that three to four people who participated in the crimes frequently were the core members.”
After intentionally causing accidents, they would also complain of pain and would be hospitalised for treatment. They would then receive insurance payouts under the guise of settlement money from nine insurance companies. It was determined that there were no significant traffic accidents requiring actual treatment.
According to news platform Seoul Economic Daily, police launched an investigation after receiving a tip from a victimised insurer that had paid out.
“We will work through the insurers to provide relief for the victims, including deferring premium increases for the drivers whose cars were hit,” a police official said.
“When a traffic accident is suspected of being deliberate, we will cooperate closely with insurers from the moment a case is filed in order to prevent further damage.”