Editorial | Swift action on traffic accident scams in Hong Kong to be commended

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 trouble or fear losing their “no-claims” insurance discount. The Hong Kong Federation of Insurers has assured drivers they will not lose discounts just for alerting companies. Tang has urged motorists to report suspected scams to their insurers. Industry representatives said an AI-powered detection system has been deployed to flag suspicious claims.

Investigators and insurers deserve praise for shedding light on such crimes and moving quickly. The force said that two doctors and a married couple were arrested for allegedly masterminding more than 20 of the scams over several years. However, providers may have more work to do to clear up customer misconceptions that are exploited by fraudulent actors. Drivers must also remain alert on and off the road, protecting themselves and others by reporting accidents and suspicious claims to police and their insurers without delay.