Spotting insurance scams—protect your peace of mind
Insurance should provide reassurance, not anxiety. Unfortunately, scammers often target older adults because they know this group typically values planning for the long-term and being financially stable. The good news is that insurance scams generally use the same tactics. You can help protect your money and your peace of mind once you know what to watch for.
Urgency and trust—that’s what Insurance scammers usually take advantage of. An email could look official. A caller may seem knowledgeable and helpful. The point is to gain your confidence and then press you to act fast, before you have time to think or verify. Any bona fide insurance agent, financial company, or government agency will never push you to make decisions immediately. They will never ask you to share information that is sensitive without proper safeguards.
Red flags
When it comes to red flags, a common one is unexpected contact. If
you receive a text, email, or call about a policy you don’t remember
purchasing, take a beat. Scammers reach out as a “courtesy,” letting
you know that they found a problem with your coverage. They might
say that you missed payment, but if you pay now, your coverage
won’t lapse. There’s also the “limited time opportunity” tactic to do
something like upgrading your benefits. Bad actors design these
messages to create worry so that you respond before checking the
facts.
It might be an insurance scam if:
- You’re pressured to act immediately
- Fees are requested upfront
- You’re instructed to keep an offer secret
- Emails have spelling errors
Another warning sign is a request for personal or financial information. This may include bank account details, your Social Security number, or payment through gift cards. Reputable insurers do not ask for this kind of information out of the blue, and they do not demand unusual forms of payment
A real insurer will usually:
- Send written confirmation before making changes to your policy
- Direct you to log in to a secure website or portal you already use
- Verify your identity using limited information, not full account numbers
What to do
Listen to your gut. If something feels off, it very well might be. Take
your time, even if the person on the other end insists you cannot.
Hang up the phone. Stop responding to messages. Contact someone
you trust and talk it through.
Finally, remember that staying informed is a form of protection.
Scams change over time, but the core tactics remain the same. By
staying calm, asking questions, and verifying before you act, you can
reduce your risk.
This article is provided by New York Life for informational purposes only. Neither New York Life, AARP, nor its affiliates provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.
