Eight charged with fake accident insurance fraud.

A gang of alleged insurance fraudsters has been referred to prosecution for deliberately staging traffic accidents with high-end imported vehicles that had undergone temporary repairs. The Daejeon Metropolitan Police Agency announced on Thursday that eight individuals, including the alleged ringleader, had been referred to the prosecution without detention under the Special Act on the Prevention of Insurance Fraud.

According to investigators, the primary suspect, a former insurance company employee, orchestrated a series of five staged collisions between September 2019 and May 2024, defrauding three insurance firms of approximately 300 million won (around $204,400).

The suspect reportedly opened an auto repair workshop that also operated as an insurance agency, allowing the group to conceal their activities. Luxury imported vehicles that had been declared total losses in prior accidents were acquired through auctions and then partially repaired to appear roadworthy. These vehicles were subsequently placed on roads to stage deliberate collisions involving accomplices, enabling the gang to file insurance claims.

To avoid detection, the suspects operated across multiple regions, including Daejeon, South Chungcheong, and Gyeonggi provinces. Police noted that the proceeds from the insurance claims were used entirely for living expenses. None of the suspects had prior convictions related to traffic accident insurance fraud.

The vehicles involved included high-end brands such as BMW, Maserati, Tesla, and even a camper van—a vehicle type that has grown in popularity in recent years. In one particularly serious case in September 2024, a staged collision between a BMW and a camper van resulted in a payout of 120 million won from the insurer. Both vehicles were destroyed in the impact, and the suspects sustained serious injuries requiring hospitalisation.

The investigation was initiated after an insurance company flagged suspicious claims, leading to the police booking all eight suspects and confirming the criminal charges.

“This is a textbook example of staged traffic accident fraud orchestrated by a former insurance employee,” a spokesperson for the Daejeon Police said. “We are committed to enforcing the law strictly to ensure that innocent citizens are not left bearing the cost of such fraudulent schemes.”

Summary of Alleged Fraud Cases

This case underscores the growing sophistication of insurance fraud schemes and the challenges faced by authorities in preventing financial crime involving staged traffic accidents.