Home Travel Woman Collected $423K By Predicting Flight Problems, Arrested For Fraud

Woman Collected $423K By Predicting Flight Problems, Arrested For Fraud

by SharonKurheg

It sounds like a plot of a bad movie.

A woman was arrested in late April for scamming flight insurance companies out of hundreds of thousands of dollars in claims over the course of four years.

On June 10, the Nanjing Police in Jiangsu China reported that from 2015 to 2019, the woman, named only as Li, bought almost 900 flights, as well as trip delay insurance for each one.

However Li never actually flew on any of those planes. Instead, she purposely chose flights that had a higher history of delays or cancellations (she’d check online reviews). She’d use that information and combined it with checking local weather forecasts and conditions. She’d buy those flights most likely to have problems, as well as flight delay/cancellation insurance, and then would cash in when “her” flights didn’t take off as scheduled.

Li had over 20 pseudonyms and used each one several times, so as not to look suspicious. However her gambling eventually caught up with her and she was arrested on fraud charges on April 29. By that time, she had made 3 million yuan ($423,000) off the insurance companies.

There is something of a happy ending to the story, though. The scam apparently caused several insurance companies in China to close the loopholes that had allowed Li to make so much money. They inserted amendments into the policies such as requiring the flight to be taken before compensation would be issued.

I’m just wondering why that wasn’t already included in the policies???

Reference: The Paper

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This post first appeared on Your Mileage May Vary

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