Fraudsters targeting insurance policy holders in South Africa
We all need to pull our socks up as crime progresses, regardless of the industry...
Crimes are becoming increasingly intricate, and criminals are becoming more brilliant in their schemes. They no longer focus only on daylight robberies; they are taking time to target people whose money isn't necessarily tangible.
Insurance fraud and scams are on the rise, with criminals posing as policyholders to gain access to their portfolios.
Criminals are pursuing your information, such as what policies you own and how many claims you made. They proceed to steal identities and conduct criminal activities such as creating false claims, defrauding insurers, and more.
Syndicated scams are even approaching vulnerable employees of insurance companies to coerce them into selling registration documents or vehicles that have been recovered after the theft and kept as salvage.
Read more: WhatsApp: How to identify a scam message
In addition, scammers are creating fake accounts and business growth opportunities for consumers, who believe their insurers are contacting them and innocently agree to sign up for new products.
The funds go into bogus accounts, and consumers are left none the wiser.
Sadly, there are cases where clients work with scammers to defraud insurers. Ngewu spoke about this mindset that many people have about insurers, saying that they think that insurance companies can self-fund the losses incurred by clients and have so much money that they won't miss the money.
"However, this has a direct impact on insurers’ profit margins, which results in higher insurance premiums for all policyholders." (Business Tech)
Staying on top of things is vital so you don't fall victim to one of these elaborate scams. Here are some tips on how to avoid becoming a victim of insurance fraud.
- Always ask questions; if it sounds too good to be true, it generally is.
- "Before making a purchase online or handing over any personal information, be sure to verify the credentials of the person or company you are transacting with,” said Momentum.
- Check with your insurer if you are uncertain about something.
- “In the event of an insurance scam and/or fraud, the insurer can also assist in investigating the incident by reviewing any relevant transactions or communications related to the scam and providing advice on the claims process.”
- Be mindful when speaking with your insurer in a public space; you never know who might be listening to or watching you.
Courtesy of Business Tech
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