scam

A sophisticated scam targeting ride-hailing drivers is circulating in China, as exposed by an automotive influencer. The “cash-for-damage” scheme involves staged accidents where drivers are deliberately caused to collide with other vehicles. Victims are then later sued for lost income and vehicle downtime, costs not usually covered by insurance. Perpetrators exploit traffic laws and delayed lawsuits to maximize fraudulent claims, making the scam highly effective. Drivers are advised to avoid admitting fault and insist on footage review by traffic police.