Hong Kong police have arrested 39 people suspected of staging 33 traffic accidents to falsely claim around HK$2 million (US$257,420) in government funds granted to victims of injury.
The force on Friday said it had arrested 24 men and 15 women involved in making false claims from the Traffic Accident Victims Assistance Scheme under the Social Welfare Department (SWD).
In the largest case, one suspect falsely claimed over HK$100,000 in financial assistance.
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The suspects, aged between 19 to 48 and including salespeople, logistic workers and administrative staff, were arrested between December 16 and 19 under suspicion of fraud and conspiracy to defraud.
“Earlier this year, an internal audit by the SWD found fraudsters using doctored documents, including fake medical certificates, to apply for the scheme,” Senior Inspector Lam Tsz-lim of Kowloon West regional crime unit, said.
“Investigations by the police found that these claims were linked to a syndicate which stages traffic accidents. One such accident involved 13 people.”
He added that the department did not issue any financial assistance related to the 33 traffic accidents.
Under the scheme, victims are eligible if injury from an accident caused at least three days of hospitalisation or sick leave certified by a registered medical practitioner.
They can claim up to between HK$822 and $68,440 depending on the length of hospitalisation and the severity of their injury.
Employees can also claim an interim maintenance grant of between $499 and a maximum of $89,880, which is payable to those who cannot work during their period of injury.
Senior Inspector Wong Chun-pak from the region’s traffic unit said that even for a simple accident involving two vehicles and an injury, a huge amount of resources was devoted to investigations.
These include time spent taking statements from both drivers, towing away vehicles and also potentially involving transport, forensic and legal experts.
“Staging traffic accidents will affect the traffic flow in the city,” Wong said.
“If police have to handle these fake accidents and cannot assist those really in need of emergency services, it will cause a serious impact.”
Lam said the fraudsters’ actions stripped true accident victims of critical emergency financial assistance.
“The actions of these fraudsters are extremely irresponsible and are an abuse of government resources and public funds,” he said.
Earlier this month, Secretary for Labour and Welfare Chris Sun Yuk-han said authorities would consider reducing the amount of compensated sick leave days that traffic accident victims could claim from the same fund, in a bid to clamp down on welfare abuse.
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