A seven-month special operation targeting insurance fraud has led to substantial breakthroughs, officials announced at a press conference on Friday.
Between April and November of the previous year, authorities resolved over 1,400 cases of insurance fraud, amounting to more than 1.5 billion yuan ($205.5 million). The crackdown, a collaborative effort between the Ministry of Public Security and the National Financial Regulatory Administration, also resulted in the dismantling of more than 300 criminal gangs, according to Hua Liebin, the head of the Ministry’s Economic Crime Investigation Bureau.
“While traditional forms of insurance fraud, such as car and personal accident insurance scams, continue to be widespread, criminals are rapidly adapting, with new and increasingly sophisticated fraudulent schemes emerging,” Hua said.
He further noted that fraudsters are increasingly infiltrating the insurance industry under various pretenses, often collaborating with insiders. “The rise of organized crime within the insurance sector is a growing concern,” Hua added.
Li Youxiang, an official from the Financial Regulatory Administration’s Investigation Bureau, revealed that the operation was supported by over 12,000 leads provided by financial regulators at various levels, assisting law enforcement in the identification and dismantling of fraudulent networks.
Li emphasized that insurance fraud not only disrupts the financial markets but also raises operational costs for legitimate insurance products. He called on consumers to be more vigilant, to recognize potential fraud schemes, and to take proactive steps to protect themselves from becoming victims of these crimes.
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