Fake Car Insurance Firm Defrauds Victims of Millions

Picture courtesy of Matichon.

Police have shut down a bogus car insurance company accused of luring second-hand car buyers into purchasing fake warranty and insurance packages, defrauding victims of over 30 million baht.

Pol Maj Gen Tasanapoom Charupratch, commander of the Economic Crime Suppression Division (ECD), announced the arrest of three suspects: Mr Assanai, 36, Ms Natthaphat, 42 and Mr Phatthapong, 26. The trio, directors of My Car Service Plus 1989 Co. Ltd., were wanted under arrest warrants issued on 29 August. They face charges of operating an insurance business without a licence and entering false information into a computer system with intent to defraud.

The scam came to light in May after the Office of Insurance Commission (OIC) received complaints from second-hand car buyers in Bang Khae and Nonthaburi. The company allegedly sold “car health insurance” packages costing up to 100,000 baht, claiming coverage of up to 300,000 baht with a network of more than 200 garages. In reality, when customers submitted claims for engine, gearbox or fuel injector repairs, the company refused to pay, citing excessive costs or exclusions.

Investigators discovered that the company, set up in 2022, had no licence to conduct insurance business. Instead of managing a risk fund, the directors allegedly diverted premiums into personal accounts. Financial checks revealed more than 30 million baht in circulation, drawn from both individual policyholders and second-hand car dealerships.

Further inquiries uncovered a promotional video on the firm’s Facebook page, in which a man posing as a BMW owner praised the company’s coverage. In fact, police said, he was a messenger hired for 500 baht to act in the advert.

Searches of the company’s registered premises in Bangkok’s Nong Khaem district and Samut Sakhon’s Krathum Baen district found only a townhouse with no staff or active operations. Additional raids targeted two used-car dealerships in Bang Khae and Nonthaburi suspected of involvement.

All three suspects denied full responsibility, claiming the firm merely offered quality assurance and repair services to used-car dealers. They were remanded to ECD investigators for prosecution.

  Adapted by Asean Now from Matichon 2025-09-05