Hong Kong police arrest 17 more over HK$137 million ‘crash-for-cash’ scam

Hong Kong police have arrested 17 more people linked to a suspected “crash-for-cash” scam syndicate as authorities investigate 669 suspicious claims totalling more than HK$137 million (US$17.4 million).

Among those arrested was an insurance claimant accused of filing 12 compensation claims worth more than HK$3 million.

Officers from the commercial crime bureau arrested the 17 claimants aged 27 to 49 between September 9 and October 7 on suspicion of fraud, bringing the total number of people arrested to 55.

Police said these new batches of suspects were linked to 63 civil compensation claims arising from traffic accidents, involving a total of HK$25 million.

One of the arrested individuals allegedly filed 12 separate claims seeking about HK$3.64 million.

Officers seized a batch of documents and mobile phones during the operation.

The force began investigating what they regarded as a new form of “crash-for-cash” scheme after receiving reports since January from insurance companies, related organisations and members of the public alleging fraudulent behaviour in traffic accident compensation claims.

Officers have so far received 669 suspicious cases involving claims worth a combined HK$137 million.

Preliminary investigations suggested 461 of the cases were connected to the same law firm.

Drivers involved in traffic accidents reported being approached long after collisions and facing what they claimed were unjustified demands for substantial compensation.

Some alleged that multiple cases involved the same law firm and doctor, raising suspicions of an organised operation.

Between February and this month, police carried out four enforcement operations and arrested a total of 55 people.

Three of them have been charged with offences including fraud, attempted fraud and perverting the course of justice.

The remaining 52 suspects have been released on bail pending further investigation and are required to report back to police between the middle of this month and mid-November.

Police said they would continue taking action against suspected “crash-for-cash” fraud syndicates.

Among those arrested earlier, a 37-year-old driver and his wife, 38, a registered nurse, were previously charged in connection with the investigation with a total of 20 offences, including fraud and perverting the course of justice.

The pair failed to appear in court when the case was mentioned on June 25, prompting the court to issue arrest warrants.