Insurance Commissioner issues a warning concerning insurance fraud
Georgia’s Insurance Commissioner, Ralph Hudgens, has issued a warning to consumers regarding insurance fraud. The insurance industry has been dealing with fraud for nearly as long as it has existed, but new threats are beginning to emerge in the digital world that the industry may not be prepared to deal with effectively. Conventional methods of fraud are also becoming more resilient to the measures that the insurance industry is taking to thwart them.
Consumers are receiving calls from fraudulent representatives of life insurance organizations
According to Commissioner Hudgens, Georgia’s Department of Insurance’s fraud division has determined that calls that many people in the state have been receiving regarding insurance coverage are fraudulent. These calls are coming from people that are claiming to have life insurance benefits that must be given to beneficiaries. Those that want to receive these fraudulent benefits are required to pay a fee and provide personal information. According to state officials, this is a fraudulent endeavor and the state is warning consumers to be cautious.
Fraudsters attempt to steal money from pre-paid cards
According to the Department of Insurance, the process is relatively straightforward. Those committing these fraudulent acts instruct their victims to submit payment from a pre-paid card, which they claim will be used to reinstate an insurance policy. The fraudsters suggest that the payment must be made within a very short amount of time. They instruct their victims to provide them with information from their pre-paid cards, which then allows the fraudsters to transfer money into their bank accounts.
Consumers urged to be cautious when dealing with unknown insurance representatives
Consumers that have received these kind of calls are being encouraged to contact the state’s Consumer Services Division, which will provide assistance. The insurance industry continues to battle fraud where it can find it, but consumers are being urged to exercise caution whenever they deal with supposed insurance representatives over the phone. The Internet can be a powerful tool to fight fraud, as those concerned with the issue can easily find out if a company is legitimate or not.