Between July 28 and 30, 2025, Luanda (Angola) experiences days of informal transport paralysis. The strike, called by associations representing taxi drivers, reflects legitimate discontent: rising fuel prices, the absence of clear regulations, and a lack of dialogue with the executive branch.
However, in times of crisis, the risk of financial crime and fraud against insurers increases significantly. Compliance and investigation professionals are well aware of this phenomenon: instability creates "windows of opportunity" for abusive practices, often invisible to the public and even to the authorities.
How strikes can be used to defraud the insurance industry
1️⃣ Simulated accidents
During strikes, operational control by insurance companies is reduced and communication with policyholders becomes difficult. This favors:
-
Reporting of fictitious accidents involving taxis.
-
Use of old or manipulated photographs to simulate alleged damage.
-
Inclusion of vehicles that were not even in circulation.
2️⃣ Staging vandalism
Vehicles may be deliberately damaged to justify compensation claims, alleging vandalism during demonstrations. The risk increases when there are actual riots in the streets, making the narrative difficult to refute.
3️⃣ Manipulation of values
Accomplices in repair shops and among experts may inflate estimates, arguing that parts and repairs are more expensive due to the context of instability.
4️⃣ Non-existent or false policies
Drivers who never took out insurance or whose policies had expired may attempt to retroactively regularize their documents and then claim compensation as if they were covered.
Internal fraud and abuse
Instability can also be exploited within the associative structures themselves and by intermediaries in the sector:
-
Diverting compensation: leaders or middlemen take the money paid by insurance companies, keeping some or all of the compensation.
-
Illegal favoritism: prioritization of claims from individuals linked to the association's management.
-
Charging "fees" to expedite processes: improper charges under the pretext of facilitating or expediting compensation.
Warning signs for insurers and regulators
To avoid becoming victims of these schemes, insurers and supervisory bodies must be alert to:
-
Sudden spikes in the volume of claims during the strike period.
-
Suspicious similarities in the accounts of damage, locations, and times of the alleged incidents.
-
Vehicles and drivers with a history of claims during periods of social unrest.
-
Inflated estimates from the same repair shops or experts.
Mitigation strategies
-
Strengthening of due diligence in all compensation claims arising during and immediately after the strike.
-
Cross-referencing data between insurers, associations, and public bodies to confirm the legitimacy of policies and vehicles.
-
Internal audits on payments made during the critical period.
-
Training of investigators specializing in fraud related to incidents during protests and riots.
-
Secure reporting channels so honest drivers can report fraud without fear of retaliation.
Conclusion
The taxi strike in Luanda is not only a logistical and social challenge: it also represents a test of the resilience and integrity of the insurance sector. Instability breeds well-structured fraud and internal abuse which, if left unchecked, undermine confidence and drive up costs across the entire chain.
For compliance, fraud, and anti-money laundering and counter-terrorist financing (AML) professionals, the message is clear: in times of crisis, prevention and investigation must be stepped up. More than ever, it is necessary to look beyond the protests and detect the silent movements that drain resources and weaken the system.
