Insurance fraud

A false insurance claim could be when a person says they have lost more than they really have, or they make more than one claim for the same thing. Alternatively, a person might deliberately destroy the asset they are claiming insurance for.

Insurance fraud could also be when a person provides false information to an insurance company in order to get insurance cover on more favourable terms, or deliberately under-insuring to reduce the premium. This type of insurance fraud could include motor vehicle, commercial, household and other personal insurance claims.

Life assurance takeover is when someone’s life assurance is claimed by a fraudster. This could happen following account takeover fraud.

• Avoid buying insurance policies that are offered on social media and messaging apps like WhatsApp, Instagram, Snapchat and TikTok.
• Be wary of insurance brokers who advertise their services on private community groups or by placing adverts in pubs, cafes, newsagents, motorcycle repair shops and motorcycle dealerships.
• Do not buy insurance from brokers who ask for payments in cash or via bank transfer. Legitimate insurance brokers will take payments via an online portal.
• Avoid insurance brokers who use personal email addresses and mobile phones as a method of contact when trying to sell you a policy.
• Check on the Financial Conduct Authority or the British Insurance Brokers’ Association website for a list of all authorised insurance brokers: register.fca.org.uk and biba.org.uk
• You can also contact the insurance company directly to verify the broker’s details.
• You can check to see if your car is legitimately insured on the Motor Insurance Database website: ownvehicle.askmid.com

If you have made a payment: Inform your bank as soon as possible, they can help you prevent any further losses. Monitor your bank statements regularly for any unusual activity.

Identity theft: If you have shared personal or financial information, and suspect your identity may have been stolen, you can check your credit file quickly and easily online. You should do this every few months anyway, using a reputable service provider and follow up on any unexpected or suspicious results. You can also sign up for Cifas services which can help to protect you against fraud.

You could be targeted again: Fraudsters sometimes re-establish contact with previous victims claiming that they can help them recover lost money, this is just a secondary scam. Hang up on any callers that claim they can get your money back for you.