Insurance scams can come in various shapes and sizes all designed to prey on unsuspecting victims - whether that’s scams that mean you take out the wrong type of insurance or to get your personal details. So how can you protect yourself and what scams should you be aware of?
Speak to trusted advisers
It’s usually best to get advice from a financial adviser you can trust. They should provide valuable insights and help you understand the different types of insurance that are available, making sure that you’re considering something that’s right for you and your needs.
Do your research
Before choosing an insurance provider, be sure to do your own research first. Check reviews, ratings, and complaints. Check the Financial Services Register. If you get a suspicious call from someone claiming to be from a financial services company, you can check whether they're legitimate on the Financial Conduct Authority (FCA) register and the FCA warning list.
Read the fine print
Never sign on the dotted line without fully understanding the terms and conditions of your insurance policy. If something seems unclear or too good to be true, get clarification before you commit.
Beware high pressure tactics
Legitimate insurance professionals understand the importance of making informed decisions. Be wary of anyone rushing you into a policy, pressuring you to sign quickly, or offering deals that seem too good to be true.
Keep your personal details secure
Protect your personal and financial information. Scammers often use this information for identity theft. Do not share your details unless you’re certain they’re a trusted and verified professional or company.
Stay informed
Keep yourself updated on the latest life insurance scams and fraud tactics. Awareness is your best defence against those looking to take advantage of unsuspecting individuals. Consider things like:
- Are they asking for more personal information than normal?
- Have they been able to send proof of identity?
- Do some online research about them, like checking their phone number or website
- Check their emails for things like spelling mistakes or if their email address matches their name
- If it sounds too good to be true, it probably is.
Stay vigilant online
It’s important to be careful when clicking on suspicious links and make sure to verify the authenticity of messages. Be wary of the information you’re sharing online and report any suspicious activity to the social media platform.
If you’ve been targeted by fraudsters and think you’re being scammed, defrauded, or experienced cybercrime, you can contact Action Fraud by visiting their website or calling 0300 123 2040. Action Fraud is the UK’s national reporting centre for fraud and cybercrime, run by the City of London Police.
