 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, April 23, 2025 — More than 3,000 insurance fraud cases were uncovered in South Korea last year thanks to citizen reports submitted through the Financial Supervisory Service (FSS) and insurance companies' “Insurance Fraud Reporting Centers,” the FSS announced on Tuesday.
Out of 4,452 reports received, 73.3% directly contributed to fraud detection, resulting in the exposure of KRW 52.1 billion (approximately USD 38 million) in fraudulent claims. The FSS stated it plans to further encourage public reporting by operating special reporting periods and enhancing public awareness campaigns.
The majority of tips involved auto insurance fraud, particularly cases of ▷drunk or unlicensed driving (62.4%), ▷driver switching (10.5%), and ▷intentional collisions (2.2%).
The KRW 52.1 billion uncovered through citizen tips accounted for about 4.5% of the total insurance fraud amount identified in 2024, which reached KRW 1.15 trillion (approximately USD 840 million).
As a reward for their contributions, whistleblowers received a combined total of KRW 1.52 billion (USD 1.1 million) in compensation. The largest reward, KRW 44 million (USD 32,000), was granted to a tipster who reported cases involving fake hospital admissions.
The FSS emphasized that public cooperation remains crucial in the fight against increasingly sophisticated insurance fraud schemes.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
