Hong Kong police arrest 11 in crackdown on 'crash-for-cash' scams totaling HK$135 million

Hong Kong police have arrested 11 people as part of an ongoing operation against sophisticated "crash-for-cash" scams that have defrauded victims of an estimated HK$135 million. The surge in fraudulent claims, which began escalating in January, prompted notifications from the Hong Kong Federation of Insurers, multiple insurance companies, and the public.

The recent arrests bring the total number of individuals detained in connection with these scams to 36 since February. The 11 individuals apprehended on Tuesday, aged 28 to 47, include engineers, real estate agents, and sports coaches. According to Lo Oi-kin, acting superintendent of the Commercial Crime Bureau, these individuals acted as claimants, employing tactics such as exaggerating income loss during sick leave and submitting fabricated documents.

Police also charged a couple previously arrested in an earlier operation with deception and conspiracy to defraud, involving fake vehicle repair receipts and income records. They face additional charges of perverting the course of justice. Lo noted that a significant number of the 500 reported cases are linked to a single law firm, which was raided in a previous operation. Authorities warn that deception and conspiracy to defraud are serious offenses carrying a maximum penalty of 14 years in jail, and further arrests are not ruled out.

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They were all acting as claimants, and they used similar tactics to those arrested before them, including claiming a loss of income during sick leave and providing fraudulent documents.