Three latest insurance phone scams uncovered – Four tips to avoid being deceived!
Lifestyle2025-02-17
6 Mins Read
With the advancement of technology and the widespread use of social media, phone scams have become increasingly rampant, posing a significant concern in society. As the saying goes, ‘Scammers are always coming up with new tricks.’ Beyond common scams such as online job scams, fake reviews, ‘guess who I am’ schemes, and romance fraud, phone scams have also infiltrated the insurance industry. Scammers often impersonate government agencies or employees of large corporations, using seemingly legitimate reasons to deceive individuals into revealing personal information, ultimately to illegally obtain money.
These types of scams not only disrupt people's everyday lives but can also result in substantial financial losses. Therefore, understanding the latest insurance phone scam tactics and how to protect yourself is crucial for everyone.
Three latest insurance phone scam tactics explained
Scam 1: Impersonating insurance companies or regulatory authorities to renew or cancel policies
This type of scam has become increasingly common in recent years. Scammers typically impersonate employees of insurance companies or regulatory authorities, contacting victims via phone calls or pre-recorded voice messages. They claim to be assisting with policy renewal or purporting that the victim has outstanding insurance premiums to pay. If the victim denies purchasing the policy, the scammer may demand a cancellation fee or request the victim’s bank account details to proceed with the cancellation. However, the scammer will then claim that the victim’s bank account has been frozen and instruct them to transfer money to the scammer’s bank account to ‘unfreeze’ it.
This scam is particularly imperceptible, as many people lower their guard when they hear the name of a well-known company and recognise their personal details being mentioned, making them more likely to believe the scammer’s claims.
Scam 2: Requesting policy withdrawals as a guarantee for an ‘investigation’
Another common scam involves scammers impersonating government officials. They claim to be conducting an ‘investigation’ and instruct victims to surrender their insurance policies or withdraw their policy value as a form of guarantee. The scammers often request detailed policy information, including its value. This type of scam is particularly targeted at elderly individuals, as scammers exploit their unfamiliarity with policy details, leading to significant financial losses.
By taking advantage of victims' lack of legal knowledge, scammers create a sense of urgency, stressing the need for immediate cooperation in the so-called ‘investigation.’ This psychological pressure causes victims to panic, making them more susceptible to deception.
Scam 3: ‘WeChat insurance’ phishing messages
With the rise of social media, scammers have started using phishing messages on platforms such as WeChat to carry out scam. They often impersonate employees of insurance companies, sending seemingly legitimate text messages to lure victims into clicking on fraudulent links. These links redirect users to a fake website designed to resemble an official insurance company page, and they are asked to enter personal and banking details. Once you provide this information, the scammers can steal your account details and transfer funds to their own accounts.
These scams often disguise themselves as ‘exclusive offers,’ ‘rewards,’ or ‘urgent actions required’ to trick people into clicking suspicious links without thinking twice, ultimately resulting in their accounts being compromised.
Common tactics and techniques used by scammers
Enhancing credibility to collect personal information
Scammers use a variety of tactics with the ultimate goal of obtaining victims’ banking details. For example, they may impersonate insurance company representatives, pretending to offer assistance. During phone calls or messages, they reveal seemingly convincing details to make victims believe they are engaged in a legitimate transaction or operation. They then request a call transfer or personal information to commit scam.
Additionally, scammers create highly convincing fake websites that closely mimic official insurance company websites, even forging URLs with slight alterations—such as replacing a letter with a similar-looking number—to avoid victom’s detection. Once victims access these websites, they are prompted to enter sensitive information such as bank account details, identity card numbers, or credit card information. With this data, scammers can easily gain control of the victim’s bank account and steal their money.
Fraudsters 'skillfully' use social media platforms to gain trust
In the past, most scams were conducted via phone calls. However, with the rise of the internet and social media, scammers have increasingly turned to platforms like WeChat, using group messages or direct messages to reach potential victims and commit scam.
Moreover, scammers have become more sophisticated in their tactics. They often build trust with their targets over an extended period, engaging in long-term conversations to lower the victim’s defences and create the illusion of a ‘cooperative relationship’, further manipulating the victim's psychology. Once a victim trusts the scammer, they are more likely to comply with requests such as transferring money, providing banking details, or even downloading seemingly harmless applications that are actually Trojan Horse malware, allowing scammers to remotely control the victim’s device.
Scamming techniques are not only reflected in the methods of operation but also in the scammers' precise selection of targets and their flexible adjustment of target’s behavior patterns. Scammers also refine their approach based on their target’s lifestyle, financial status, and social network. By conducting prior research, they tailor their fraudulent strategies to different victims based on different circumstances to increase their chances of success.
Preventative measures: 4 tips to avoid falling victim to scams
Phone scams are becoming increasingly sophisticated, but as the saying goes, ‘Better safe than sorry.’ Here are 4 practical tips to help you stay protected and avoid becoming the next victim.
1. Verify registered SMS sender names
When receiving a suspicious SMS, always check whether the sender is registered under the ‘SMS Sender Registration Scheme.’ Companies or institutions participating in this scheme use a registered sender name that begins with a ‘#’ symbol to help recipients verify the authenticity of the message. For instance, AXA Hong Kong uses ‘#AXA’ or ‘#AXA HK’ as its registered sender name when sending SMS messages to local mobile users. If you receive an SMS claiming to be from a registered company but without the ‘#’ symbol, it is likely a scam. Always be cautious and never trust messages or emails from unknown senders. You can also download the Emma by AXA app and enable 'push notifications' to receive accurate official information.
2. Be cautious when clicking on suspicious links
Avoid clicking on links from unknown sources, especially those received via SMS, email, or social media platforms. These links may lead to fraudulent websites or infect your device with viruses or Trojan Horse malware, leading your personal and banking information being stolen. Always verify the legitimacy of a URL before clicking, and if anything seems suspicious, refrain from accessing it. If in doubt, visit the official website directly or contact the organisation to confirm the link's authenticity.
3. Verify caller or sender and avoid sharing personal information
Remain highly cautious when receiving calls or messages from unknown or unverified sources. Scammers often attempt to gain your trust and use various pretexts to request personal information, such as bank account details or identification numbers. For example, if you receive a call claiming to be from a regulatory body such as the Insurance Authority, do not be misled by scammers insisting on ‘urgent action.’ Insurance Authority never contacts the public via pre-recorded voice messages for inquiries. Always verify the identity of caller and sender multiple times, or proactively contact the relevant organisation through official channels to confirm the legitimacy of the request, such as contacting Insurance Authority or official customer service hotline. Never disclose personal information without proper verification.
4. Use Scameter and Scameter+ App
If you are unsure about the authenticity of a call, you can use dedicated tools to verify it. The Scameter and Scameter+ App, launched by the Hong Kong police under the CyberDefender initiative, help identify suspicious phone numbers, websites, emails, platform accounts, and payment accounts. These tools also provide real-time alerts about common scam tactics, allowing you to exercise extra caution when dealing with unknown individuals or organisations and reducing the risk of falling into a scam.
Safeguard your finances – It starts with you
Phone scams come in many forms, and fraudsters are becoming increasingly cunning. That’s why every one of us must remain extra vigilant and take proactive measures to protect ourselves and our loved ones from financial fraud. Scammers use various tactics to deceive us, but their tricks often follow common patterns. By understanding these fraudulent methods and staying calm while verifying information carefully, we can all become our own best line of defence.
To enhance your protection, make sure to stay informed about the latest scam prevention tips and share them with your family and friends. Raising awareness together helps create a safer environment for everyone. Don't give fraudsters an opportunity—starting today, become a scam prevention expert and ensure that every penny of your hard-earned money remains secure!
Source:
Anti-Deception Coordination Centre (https://www.adcc.gov.hk/en-hk/home.html)
Insurance Authority (https://www.adcc.gov.hk/en-hk/home.html)
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
Follow AXA
