The Financial Supervisory Service (FSS) and the National Police Agency are launching prevention training and a focused public awareness campaign to eradicate staged traffic accident insurance fraud.
On June 23, the FSS announced that it will conduct traffic safety education aimed at preventing staged traffic accidents starting at the end of this month, in collaboration with the National Police Agency, the Korea Road Traffic Authority, and the General Insurance Association. The four agencies signed a memorandum of understanding in November to combat insurance fraud related to staged traffic accidents.
The training will cover types of staged traffic accidents, real-life detection cases, how to respond on-site when fraud is suspected, and methods for recovering increased insurance premiums. Multimedia content, including short-form videos for mobile and social media, will also be utilized.
The FSS noted that there have been increasing cases of young professionals in their 20s and 30s unknowingly participating in insurance fraud through social media and Telegram. Staged traffic accident insurance fraud victimizes innocent drivers and shifts the social costs, such as increased insurance premiums, onto all policyholders.
By September, the General Insurance Association and the FSS will produce and distribute promotional videos and posters. Messages such as “Staged traffic accidents will definitely be detected” and “If you follow your friends into a staged accident, the police will be involved too” will be conveyed through Instagram, YouTube ads, digital billboards at COEX Mall, and airport limousine bus advertisements.
The National Police Agency has been conducting a “focused investigation period for traffic accident insurance fraud” from June 15 to September 30. Those found guilty of insurance fraud can face up to 10 years in prison or fines of up to 50 million won. A reward of up to 50 million won is available for tips leading to arrests.
An FSS official stated, “The moment you participate in insurance fraud because it seems like everyone is doing it or that it’s no big deal, you become subject to criminal penalties. If you suspect any fraudulent activity, please actively report it to the FSS or the insurance company’s fraud reporting center.”
* This article has been translated by AI.
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