Taking out an insurance policy is one of the best ways to protect your wealth and future. Unfortunately, scammers sometimes use protection as a way to try to catch people out. Looking after your wealth includes being aware of fraud – and how to avoid becoming a victim. 

To outsmart the scammers, make sure to double check any communications from insurance companies. Think carefully if something looks or sounds wrong. Always take a moment to check if the company you are speaking to is genuine – and if you are in any doubt, ask for proof. 

There is a high chance that unsolicited messages on social media or out-of-the-blue phone calls are fraudulent because this is not how insurance companies will contact you. Don’t share your personal details unless you are certain you are talking to a legitimate company.

If things don’t feel right, trust your instinct. Scammers have become more sophisticated in recent years, but it is still possible to detect when someone is trying to commit fraud. In particular, be wary of anything that sounds too good to be true. 

If you are ever tempted to hand over personal details, stop and think: “do I know who I am talking to?” If an unsolicited caller offers you cover at an ultra-low price, that should ring alarm bells. Be mindful that they might be offering you a ‘ghost policy‘: make-believe policies set up by fraudsters to entice you into buying them, which offers no genuine protection. 

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.