Fraudulent claims over minor or non-existent traffic collisions should prompt drivers to remain alert on and off the road
Driving can be challenging in Hong Kong, where despite high safety standards there are dozens of accidents each day on the city’s busy road network. Unfortunately, motorists face a new hazard – scammers making bogus claims. Police announced several arrests on Wednesday, a week after the force and insurers raised the alarm about unusually high and belated compensation claims for minor or non-existent traffic accidents.
Victims and the insurance industry have been steadily reporting cases since the announcement. The force’s commercial crime bureau said more than 100 suspicious cases are under review. Secretary for Security Chris Tang Ping-keung revealed on Sunday that fraudsters are apparently working in organised syndicates, using dashcams to record minor traffic offences in support of false civil claims.
Drivers have reported suddenly facing huge demands for compensation long after police had closed traffic cases and fines were paid. Scammers typically ask for legal fees, medical expenses, loss of income, vehicle repairs and other miscellaneous costs. Some claims are for hundreds of thousands of dollars. Tang said one single individual was suspected of claiming neck injuries in 20 separate incidents. Gangs seem well aware that local drivers prefer to settle privately rather than involve insurance companies or the authorities. Victims may want to avoid...
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