Insurance Scam Alert
The Delhi Police have issued a notice to the public, alerting them to an increase in insurance-related phone scams. These fraudulent activities typically involve individuals posing as representatives from reputable insurance companies or regulatory bodies, such as the Life Insurance Corporation (LIC) and the Insurance Regulatory and Development Authority of India (IRDAI). Their aim is to extract personal and financial information from unsuspecting policyholders. The victims are often misled with false claims regarding unclaimed bonuses, or they may be intimidated with threats of policy cancellations. Authorities have advised the public to remain cautious and report any suspicious activities immediately.
Understanding Insurance Scams
Insurance scams are deceitful schemes in which fraudsters impersonate officials from genuine insurance companies or regulatory agencies. Their primary objective is to trick policyholders into divulging confidential information or transferring funds under the guise of legitimate business. Scammers often employ professional-sounding language and may utilize Caller ID technology that mimics that of real organizations to gain the victims’ trust quickly.
These fraudulent schemes take advantage of the intricate jargon associated with insurance policies and the general lack of awareness among the public, particularly targeting senior citizens or individuals who have held policies for extended periods. In many instances, scammers claim there is an urgent bonus, dividend, or refund that needs to be urgently claimed, warning that any inaction will result in funds being redirected to an insurance agent.
Mechanisms of Operation
Scammers initiate contact through phone calls, often instilling a sense of urgency or fear to manipulate their targets. The Delhi Police have provided several illustrative examples of common tactics used by these fraudsters:
- Fake Call 1: “We are calling from the LIC service branch. You should transfer your existing policy to a new one for better returns.”
- Fake Call 2: “There’s an unclaimed annual equity bonus in your account. Deposit money now to stop it from being redirected to your agent.”
- Fake Call 3: “Your insurance agent has purchased a policy from another company. Deposit money to receive its dividends.”
- Fake Call 4: “You qualify for a loyalty bonus, but it was sent to your agent’s code. Please provide your policy details to correct the error.”
- Fake Call 5: “We are from the Insurance Verification Department. Please share your PAN, Aadhaar, and bank details to complete your verification.”
- Fake Call 6: “Your policy is about to be canceled. Share your details and secure code to prevent your funds from being transferred to your agent.”
- Fake Call 7: “You can raise an objection against your bonus cancellation by sending ₹30,000 along with your PAN and Aadhaar.”
- Fake Call 8: “Please provide your policy details, or your pensions and payments will be blocked.”
- Fake Call 9: “Your policy has lapsed. Stop paying premiums and buy a new one.”
- Fake Call 10: “We’re offering profitable new policies, refunds, or moral support to recover any money you lost from previous policies.”
The emotional manipulation employed in these scams often plays on the victim’s fear of financial loss or the desire for monetary gain, leading them to divulge sensitive information or send money without due diligence.
Protecting Yourself from Insurance Scams
In light of the rise in insurance scams, both the Delhi Police and financial experts have highlighted essential strategies for individuals to protect themselves:
- Do not engage with unsolicited calls offering policy transfers, unclaimed bonuses, or any form of urgent action.
- For any concerns about your insurance policy, contact your insurance provider directly rather than relying on third-party calls.
- Avoid making payments through cash or wire transfers. Use cheques or credit cards for transactions, as these offer a traceable payment history.
- Refrain from sharing personal details, such as your PAN, Aadhaar number, policy number, bank details, or CVV over the phone.
- If you suspect that you have fallen victim to a scam, alert your insurance provider immediately and request an investigation.
- If you realize a scam is in progress, contact your bank right away to halt any payments associated with it.
- Keep track of all communications related to the scam, including emails, texts, and call logs.
- Report the incident at your nearest police station or cybercrime unit, and provide all supporting documentation, including bank statements from the past six months.
By applying these precautions and spreading awareness, individuals can better shield themselves from the risks of insurance scams and help others in their communities remain aware of these deceptive practices.
