'Traffic Accident Insurance Fraud' for Payouts... 72% of Suspects Are in Their 20s and 30s

National Police Agency to Launch Four-Month Intensive Crackdown
Strict Enforcement of Criminal Organization and Group Charges

Seven out of ten suspects in insurance fraud cases involving deliberately staged traffic accidents are in their 20s and 30s. The police plan to launch an intensive crackdown over the next four months, strictly applying charges such as criminal organization offenses.

The National Investigation Headquarters of the National Police Agency announced on June 14 that it will be cracking down on traffic accident insurance fraud crimes until September 30. The police pointed out that deliberately causing traffic accidents not only endangers public safety but also constitutes a serious crime that subjects victims to triple hardships, including criminal penalties, administrative sanctions, and increased insurance premiums.

Seodaemun-gu, Seoul, National Police Agency Headquarters, National Investigation Headquarters. Photo by Jinhyung Kang

Over the past four years, 12,902 cases have been detected through focused crackdowns, resulting in 6,261 individuals being apprehended (153 of whom were arrested). The number of cases by year was 3,411 in 2022, 4,023 in 2023, 2,856 in 2024, and 2,612 last year, showing a gradual decrease.

Nevertheless, the amount of damages resulting from traffic accident insurance fraud continues to increase. It has been analyzed that young people without stable jobs are especially vulnerable to the temptation to participate in such crimes. According to the police’s analysis of last year’s intensive crackdown results, 72% of suspects were in their 20s and 30s, with the unemployed accounting for the largest proportion at 20%. This is why the police believe that intensive investigations are necessary to eradicate these crimes.

The National Investigation Headquarters has designated the 25 traffic crime investigation teams currently operated by city and provincial police agencies nationwide as dedicated teams for traffic accident insurance fraud. The main targets for crackdowns include: ▲ deliberate traffic accidents ▲ exaggeration of traffic accident damages ▲ collusion between related parties such as hospitals and repair shops. In particular, for organized fraud activities that disrupt financial order, the police plan to actively apply criminal organization charges under the Penal Code for stronger punishment. They also intend to use pre-indictment confiscation and forfeiture systems to dismantle the foundations of organized criminal activities.

Director Park Sungju emphasized, "Automobile insurance fraud is a serious crime that threatens the safety of people's lives and bodies and increases economic burdens," adding, "We will respond more strictly by applying criminal organization charges and other measures."

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