Beware the Scammer: Protecting Yourself from Life Insurance Fraud

Common Types of Life Insurance Scams

Life insurance is an important tool for financial security. But alongside legitimate offerings, there lurk scams that threaten consumers' well-being. Here are the most common types to watch out for.

Online Scams

With us relying more and more on the internet, online scams — or phishing — have become very common. Ofcom found that nearly nine in ten adult internet users (87%) have encountered content online that they believed to be a scam or fraud.

When it comes to your life insurance it can be devastating to find out the policy you thought you had doesn't exist, whether it be you that finds out or your family.

Online scams range from dodgy emails to fake websites or ads, all usually promising the world for little money. Sadly, scammers have become smarter; sometimes their websites can look almost identical to the real thing, and emails can have the smallest differences.

In the insurance world, there are also scammers known as "ghost brokers". These are non-regulated people who will "sell" you insurance and forge documents to make you believe you have some kind of policy when in reality you don't.

Telephone Scams

We've all been there, sipping a cup of coffee when you receive a call from a number you don't recognise. With the technology we have nowadays a lot of phones can now tell you if you're receiving a suspected scam call. But sometimes we will take that chance and answer, and sometimes we might genuinely believe our insurer is telling us there's a problem with our policy. They might ask for admin fees to sort it or tell you that your premium was meant to be a lot more than what it is.

In-Person Scams

If someone walks up to you and offers you a life insurance policy, it can sometimes feel hard to say no when that person is directly in front of you. They may pressure you to provide personal details and payment upfront, which can feel like a difficult situation to get out of in the moment.

How to Stay Safe

If you think someone is trying to scam you, here is what you should do:

Do:

• Make sure all of your accounts have strong passwords and keep them safe. Use multi-factor authentication wherever possible for an extra layer of security.
• Check with your real insurance provider or bank whether they have tried to contact you.
• Check the FCA website to confirm whether the broker is regulated.

Do not:

• Click on any links in emails, texts, or suspicious websites.
• Answer the phone if you don't recognise the number.
• Give any money to companies or brokers until you are 100% sure they are legitimate.

I've Fallen Victim to a Scam — What Now?

If you are worried you may have fallen victim to a scam, there are a few things you will need to do:

• If you feel threatened — report this to the police immediately by calling 999.
• If someone tried to contact you — keep a note of things like the phone number they called from, where they were calling from, their name and the time of the call.
• If you gave them remote access to your computer — change all of your passwords, let your bank know you could have had information stolen, and make sure you have anti-virus software installed.
• If you have transferred money — call 101 immediately.
• If they took your details — contact Action Fraud and the FCA with any details.
• If they pretended to be your insurance provider — contact your actual provider to let them know, passing over any details you have about that contact.

Stay Protected

The best defence against scams is working with a regulated broker. Simply Zest is FCA regulated, and you can verify this on the FCA register. If you are ever unsure about a policy or provider, get in touch and we will be happy to help.