Police bust syndicate in $1.7m travel insurance scam, nine arrested

Nine people have been arrested for participating in a travel insurance scam totaling over HK$1.7 million, claiming overseas injuries with fake hospital records without having left Hong Kong.

The arrests came after the operation yesterday (Apr 22) following a referral from the Hong Kong Federation of Insurers last October, which flagged dozens of suspicious travel insurance claims.

Among those arrested are six men and three women, aged 25 to 68, including seven claimants, two suspected syndicate members.

The arrestees include several current and former insurance brokers, as well as workers in marketing, retail, clerical, security, and electrical trades.

After in-depth investigations of over 70 suspicious claims, officers found that the series of seemingly unconnected cases were orchestrated by one syndicate.

Operated between April and November last year, the claimants falsely stated they had traveled to countries including Vietnam, Singapore, Japan, and Italy, submitting fake documents, ranging from airline tickets, hotel bills, and overseas medical records, to seek compensation for similar injuries and symptoms.

It is reported that the total amount claimed exceeded HK$1.7 million, with the largest single claim at around HK$40,000.

Police also discovered that claimants would use provided phone numbers and open specific bank accounts as the syndicate instructed to process the claims, which would later be withdrawn in cash from ATMs.

Authorities warned the public not to defraud travel insurance companies simply because it's a small amount or alleged overseas accidents, stressing that close communication with the insurance sector will continue for further investigations.

All nine arrestees remain in custody for questioning and further arrests have not been ruled out.

The investigation is ongoing.