Buying life insurance coverage is all about protecting those you care about after you’re gone. What’s sad is that there are those who perpetrate life insurance scams, all in hopes of getting their hands on money that does not belong to them. Even worse, the most sophisticated life insurance fraud is often carried out by insurance agents. Here, we lay out some of the most common life insurance scams and discuss how to avoid becoming a victim.
What are the most common types of life insurance scams?
Scams are limited only by the imagination of the crook — and they are crooks. While not all scammers are insurance agents, insurance agent fraud is real. After all, these people have access to both your personal information and your money. The first step in protecting yourself is recognizing the most common types of life insurance scams.
When your identity is stolen, it can upend your life. One of the most common ways to attempt identity theft is to contact you by email, phone, or letter to request personal information. For example, a scammer may tell you all about a life insurance policy that sounds perfect for you. To “help you get started,” the scammer then asks for personal information, including your Social Security number. Once they have your name, Social Security number, and address, they’re well on their way to using your identity for their own illegal purposes or even selling your identity to another thief.
The fact that most scammers have a great deal of experience makes them dangerously smooth. It’s easy to believe what they’re saying. When someone posing as an agent asks for your banking information, credit card number, or mother’s maiden name, you may be tempted to give it to them.
Scammers get away