I watched dashcam videos, and most times after accidents, it turned out that there is no insurance or, worse, wrong insurance information is given, only to be found later that it’s fake. Obviously, this is not real statistics, but something I observed.

> nothing is stopping Karens from reporting things

True, but when you provide a platform for that, you incentivize the behavior. As mentioned below, you might start getting “points” in the app for these reports, just like how you report gas prices and get points that might win you free gas.