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59 Individuals Referred to Prosecution for Insurance Fraud Using Social Media to Recruit Accomplices

59 Individuals Referred to Prosecution for Insurance Fraud Using Social Media to Recruit Accomplices
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▲ A fraudulent post used to recruit accomplices for insurance fraud

The Daegu Metropolitan Police Agency announced today (June 25) that it has referred 59 individuals, including a person in their 20s identified as A, to the prosecution without detention on charges of violating the Special Act on the Prevention of Insurance Fraud for staging intentional traffic accidents and collecting hundreds of millions of won in insurance payouts.

According to the police, the suspects are accused of collecting approximately 300 million won from insurance companies across 60 instances between February 2023 and September 2024 in the Daegu area by staging minor intentional traffic accidents or filing false accident reports.

Investigations revealed that two of the suspects, A and B (in their 30s), posted advertisements on social media offering "high-paying part-time jobs" and proposed insurance fraud to those who contacted them.

It was found that they would pre-assign roles as perpetrators and victims to stage intentional collisions or deceive insurance companies by claiming that accidents had occurred.

The largest share of the insurance money obtained through these methods was taken by the recruiters, A and B, while the remaining 57 suspects received varying amounts based on their level of involvement in the crimes.

A police official explained, "The suspects exploited the loophole that insurance companies do not conduct on-site investigations for minor traffic accidents."

(Photo: Provided by Daegu Metropolitan Police Agency, Yonhap News)
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