Better Business Bureau scam alert: Beware of life insurance impostors targeting older adults
The BBB is warning consumers to be cautious of unexpected calls from people claiming to represent a life insurance company. Recent reports involve callers telling older adults that they have signed up for a life insurance policy, then attempting to collect personal or financial information or initiate payments.
How the scam works
You receive an unexpected phone call from someone claiming to be a life insurance agent or representative. The caller may say you recently signed up for a policy or already have an account with the company. The caller may ask you to confirm personal information, provide banking or payment information or answer questions about your existing insurance coverage.
In some cases, the caller may attempt to set up payments for a policy you do not remember purchasing. The call may seem convincing if the caller already knows your name or other basic information. However, scammers can use publicly available information to make their calls appear legitimate.
An Ohio consumer reported to the BBB Scam Tracker that their sister was cold-called and enrolled in a life insurance policy she did not remember purchasing. The consumer noticed payments being withdrawn from her bank account and eventually stopped the payments through the bank.
Another Ohio consumer reported receiving a call from someone claiming to be a life insurance agent who demanded information about their policy. After the consumer refused, they contacted the insurance company directly and learned the caller was not affiliated with the company.
How to avoid voice search scams
Be cautious of unexpected calls. If someone contacts you about a policy you do not remember purchasing, do not provide information until you can verify the claim.Check your bank statements. Look for unfamiliar withdrawals or recurring payments. If you notice an unauthorized payment, contact your bank or credit card company as soon as possible to dispute the charge. You should also report the scam to your state’s consumer protection office and the Federal Trade Commission at ReportFraud.ftc.gov.Contact the company directly. Look up the insurance company’s official contact information independently and call to verify whether the policy or representative is legitimate.Do not confirm personal information. Never provide your Social Security number, banking information, credit card number or other sensitive information to an unsolicited caller.Research before purchasing insurance. Compare insurance companies, check that they are licensed and review their reputation before purchasing a policy. Carefully review the insurance contract and make sure you understand the premiums and terms.
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