With the increased use of technology, such as computers and smartphones, comes a surge in cybercrime. One common type of scam that can be found today is insurance scams. In this article, you’ll learn about some of the telltale signs to look out for and tips on how to protect yourself from these types of scams.
Signs of Insurance Scams
When a salesperson approaches you, there are certain signs to watch out for that could indicate it’s a scam. These include:
Insurance scams are really common and can take a variety of different shapes. The most important thing to remember is that it is not your fault if you have been scammed, so do not worry about it and focus on the positive aspects of having insurance. The best way to avoid being scammed is to always look at the policy before signing anything.
To protect yourself from being targeted by an insurance scam, never provide your personal information over the phone, including names and social security numbers. Look for a legitimate company to purchase your insurance with before contacting them. If in doubt, contact your state’s Department of Insurance or Better Business Bureau.
There are many ways to protect yourself from scammers when purchasing insurance. In order to keep yourself safe from these types of scams it is important to be conscious of potential red flags that might indicate that you are being targeted by a scammer.
The first step to protecting yourself is knowing what scams exist. They may seem harmless, but they can quickly escalate into a costly and time consuming situation. Below are some common schemes which are used as part of an insurance quote scam.
1. The “bait-and-switch” scam
2. The “overpayment scam”
3. The “hidden fees” scam
4. The “phantom policy” scam
5. The “too good to be true” scam
6. The “ponzi scheme”