Mumbai, February 24: Insurance scams have become a major concern, with fraudsters finding new ways to deceive policyholders. Many people fall victim to fraudulent schemes that appear legitimate, often losing large sums of money in the process. These scams typically involve phone calls, emails, or messages from individuals posing as officials from reputed insurance companies, luring customers with attractive offers, refunds, or policy benefits. Let me know what an insurance scam is.

In a recent scam,  a woman who had purchased two insurance policies from SBI Life Insurance fell victim to a scam. A fraudster, pretending to be an official from the company, informed her that she was eligible for a surrender amount if she paid a premium. Trusting the caller, she transferred an initial payment of INR 1 lakh as a processing fee, only to realize later that she had been deceived. Gurugram ‘Scam’: Driver Allegedly Hits Pedestrians With Car’s Side Mirror, Demands Money After Blaming Them for Damages in Haryana; Reddit Post Goes Viral.

What Is An Insurance Scam?

An insurance scam is a fraudulent scheme where scammers deceive individuals into making payments or sharing personal information under the pretext of insurance-related benefits. These scams often involve fake promises of policy bonuses, refunds, or surrender amounts. Fraudsters may pose as representatives of legitimate insurance companies, convincing victims to pay fees or premiums for non-existent benefits. What is a Work-From-Home Scam? Know How to Spot and Avoid This Remote Job Fraud?

Such scams can happen through phone calls, emails, or text messages, where victims are tricked into transferring money or providing sensitive details. To avoid falling prey to insurance fraud, it's essential to verify any communication directly with the insurance provider, avoid making payments to unknown accounts, and report suspicious activities to authorities.

How To Avoid Insurance Scam?

  • Always confirm the identity of anyone claiming to be from an insurance company by contacting them directly through official channels.

  • Be cautious of urgent requests, as scammers often pressure victims to act quickly. Take time to verify details and consult someone trustworthy.

  • Never share sensitive information such as bank details, passwords, or OTPs over calls, messages, or emails.

  • Report any suspicious activity immediately to the authorities, the the cybercrime helpline, or your bank to prevent further fraud.

To avoid falling victim to online insurance scams, always verify the identity of callers claiming to be from insurance companies. Avoid sharing personal or banking details over the phone and cross-check official communication through the insurer’s official website or customer service helpline.

(The above story first appeared on LatestLY on Feb 24, 2025 05:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).