How to Avoid Becoming Prey to Common Insurance Fraud

Many criminals are looking for ways to take advantage of the pandemic-induced economic crisis by trapping unsuspecting people in common life insurance scams. One of the most popular types of insurance fraud circulating throughout the United States and Europe is criminals posing as insurance agents. These fake insurance agents prey on people by selling them cheap and faulty policies. Unsuspecting people believe that they are purchasing coverage from a legit insurer.

Here is a look at how to avoid this type of insurance fraud.

If you are a victim of this type of insurance fraud, you may not figure out the malicious activity unless you have to file a claim. Once you try to file a claim, you will be informed that your policy is not valid with the company. It may be too late at this point, and your assets will be in serious jeopardy. Fraudulent insurance agents often target desperate people with no other options. This makes it easier to complete a transaction. The scammers use technology to manipulate the documents so that you will have no idea that they are fake.

  • Identifying an Insurance Scammer

Insurance scammers will apply for a policy using your name to get access to your premium payments. Once they have what they need, they will cancel your policy. Scammers perform all of these activities while you are completely unaware of what is going on. By the time you realize that you don’t have a legitimate policy, it is often too late. These scammers normally advertise fraudulent policies on social media sites or different apps. They advertise policies that are substantially cheaper than traditional ones. If the terms of the policy sound too good to be true, that is a clear sign that something is wrong. Insurance scammers can alter documents to make them seem like they are legitimate before offering them to people.

Pay attention to some of the warning signs. Legitimate agents should have a phone number listed with their profiles. If you are dealing with an agent who is hard to reach over the phone, that is a bad sign. The fake agents often communicate primarily through email and social media. Be wary of agents who only accept cash payments through cash transfer apps. Beware of agents who claim that they can find you a great insurance policy without providing you with any documentation from the insurance company.

  • Detecting Common Life Insurance Scams

If you have any questions about the validity of a policy, contact your local insurance agency. Check with the state department to make sure that the agent has a license to sell insurance in your state. If you are unsure about something, do not sign any paperwork. Do not make any payments until you are sure that everything is secure.

Be aware of insurance scams that could lead to serious losses in the future. The most important thing is to do your research. Learn the most common signs of insurance fraud so that you will be prepared if a scammer tries to contact you.  For additional peace of mind, make sure to get yourself covered with the right insurance coverage.  Contact the experts at The Reardon Agency today to find out what policies will work best for your particular situation. We are ready to assist you with all your coverage needs today.

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