Police smash Guangdong insurance fraud gangs

Police in Guangdong province have detained 39 suspects accused of deliberately causing road traffic accidents to fraudulently claim compensation.

As many as 16 criminal gangs were broken up in the operation, code named Jufeng-4, which took place from April 10-20.

The suspected racketeers were involved in what is commonly known as peng ci in the Chinese mainland, the act of pretending to be hit by a vehicle and then asking the driver for a large amount of compensation.

Lin Weixiong, director of Guangdong Provincial Department of Public Security's Criminal Investigation Bureau, said the suspects had been active in a number of cities along the Pearl River delta.

Operation Jufeng-4 has dealt a heavy blow to this type of crime, Lin told a news conference in Guangzhou on Wednesday.