The Shanghai Public Security Bureau has busted an insurance scam that had made over 60 million yuan (about $9.3 million) in illegal profits. The case has revealed weak internal controls over insurance companies and a lack of consumers’ privacy protections, said the bureau at a press conference on Aug. 12.
The bureau said the scammers had misled consumers to cancel their existing policies and buy new ones. They then put the new orders under “new insurance reps” to claim special commissions and bonuses for new reps only.
