Georgia Insurance Commissioner Warns of Life Insurance Scam

Ralph Hudgens, Georgia Insurance Commissioner, has issued a warning to the people of Georgia to be wary of a current life insurance scam. The con artists call the consumer and tell them about how their relative had a life insurance policy that will expire, but it can be renewed for a fee. Hudgens says that he has received complaints from angry consumers who lost thousands of dollars because of individuals claiming to be insurance representatives. 

Hudgens continued in saying that these criminals tell the consumer that their deceased loved one had a policy that lapsed. However, if they pay immediately, they can become the beneficiary. 

Scammers will tell the victim to make the payment using money cards that are pre-paid to reinstate the policy. However, once the consumer purchases the cards, the fraudster calls back to ask for the victim's 14-digit serial number, which lets them steal the funds and put them into their own account, without needing the actual card. In addition to this scam taking place in Georgia, Hudgens's spokesman Glenn Allen reports that a similar scheme has occurred in Washington, Arizona, Virginia and Tennessee. The scam has been said to have originated in Alabama. 

The insurance industry has fought an ongoing battle against fraud, and they have encouraged customers to exercise caution when dealing with people claiming to be insurance representatives via the phone. In addition, the Internet has become a powerful method of fighting fraud. Those concerned about a company can check to find out if a company has legitimacy or not. 

Hudgens has recommended that people with phone calls concerning life insurance policies should hang up and contact the Consumer Services Division at 1-800-656-2298. At the least, verify the authenticity of the company before believing them, and especially be cautious when fees have to be paid or serial numbers have to be given. According to Georgia's Department of Fraud Division, many of these calls in Georgia have turned out to be fraudulent.

Call Pachuta Insurance Today @ 706-769-2262

Sources:
Live Insurance News
WBRC Fox 6