Insurance Crime Bureau alerts of a scam targeting the industry

The Insurance Crime Bureau (ICB), an organisation established to fight fraud in the industry, has recently warned about a concerning trend wherein criminals are directly targeting insurance companies, through their call centres, by impersonating policy holders and requesting copies of their policy schedules and claims history.

Santam, South Africa’s largest short-term insurer, hereby wishes to alert clients and the public of this trend, and more importantly to be vigilant when dealing with a person/s who call them, purporting to be representatives of insurance companies.

Identity theft and insurance fraud are illegal, and perpetrators can be sentenced to jail time, if found guilty by a court of law.

According to the ICB perpetrators of this crime telephonically contact insurance companies’ call centres and pose as legitimate policyholders. They request sensitive documents such as Policy Schedules and Claims History under the guise of routine updates which is not unusual, especially when consumers are shopping around for better premiums.

In the wrong hands, this information could be used to perpetrate various criminal acts, including identity theft, fraudulent insurance claims, and financial scams. Policy schedules contain personal information, including the name of the insured, their ID, residential address, policy details, and other confidential data.

Charisse Ras, Santam’s Group Chief Risk Officer, said the public needs to be extremely cautious when dealing with persons purporting to be representatives of insurance companies.

“As Santam we are committed to ensuring the safety of clients’ information. We therefore are continuously monitoring all emerging threats and we work very closely with the authorities to protect the public and our clients. We also urge the public not to hesitate to contact their insurer if they have any concerns or require assistance”, said Ras.

She added that the public can do the following to protect themselves against the identified fraud attempts:

• STAY VIGILANT - Be cautious when receiving requests for personal information and always perform the necessary security checks to confirm you are actually speaking to a representative of an insurance company.
• VERIFY AUTHENTICITY: Before sharing any personal information, verify the identity of the requester.
• REPORT SUSPICIOUS ACTIVITY: If you suspect that you have been targeted by fraudsters or have inadvertently shared personal information with them, report the incident to your insurer and the appropriate authorities IMMEDIATELY!

Santam has a task team of experts to deal with instances of fraud. Should policyholders or members of the public wish to contact Santam regarding alleged acts of insurance crime or advice; they may direct communication to group.intelligence@santam.co.za or call the company fraudline on 0860 600 767.