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How to protect yourself against insurance identity fraud

You’re probably aware of fraudsters using stolen personal data – like names, dates of birth and addresses – to open bank accounts or take out credit cards, but did you know that identity theft is also a problem when it comes to insurance? 

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What is insurance identity fraud?

Insurance identity fraud is when a criminal steals a victim’s data and uses it to take out an insurance policy in their name. Thieves get hold of personal information through routes such as phishing attacks, stolen post, and hacking, as well as purchasing stolen data from other criminals through the dark web or over social media.

Why would a fraudster use someone else’s data in insurance fraud?

It might not be obvious at first as to why a criminal might take out a policy using someone’s else details as it’s often part of a wider fraudulent scheme, such as ghost-broking. Ghost-broking is a type of scam that involves a group or individual posing as a legitimate insurance broker while selling policies to victims that are fraudulent, invalid, or don’t exist at all. Identity theft plays a part in scams like ghost-broking as fraudsters will often use details which are favourable in the eyes of an insurer, such as an address in an area that is deemed as low risk, to secure a lower premium. The ghost-broker may then sell that policy on to a victim, doctoring the policy documents to appear legitimate.  

How can I protect myself against identity fraud?

While identity theft can happen to anyone, you may be more vulnerable if you’re not vigilant.

Educate yourself and others:

Learning and practicing good cyber security habits is key. Share your knowledge with others too, including family and employees.

Password protection:

Password protect all of your devices and accounts with unique, complex passwords that combine numbers, letters, capital letters, and symbols. Enable two-factor authentication wherever possible for added security.

Verify requests for personal information:

Exercise caution when providing personal information to third parties, especially if asked for unexpectedly.

Be mindful on public Wi-Fi:

Public networks can be more easily hacked by fraudsters, be cautious of the types of apps or websites you use when connected to one.

Download software updates:

Updates often fix bugs or provide enhancements to security.

Consider your online and offline information:

Think twice before sharing personal details on social media and ensure that you redirect mail if you change your address.

Monitor financial statements:

Regularly review bank statements, credit card transactions, and insurance policy documents for any suspicious activity or unauthorised changes.

Act on warnings:

If you receive notice that your data has been compromised in a data breach, increase measures to protect yourself.

Report suspicious activity:

If you suspect you have been a victim of identity fraud, be sure to report it to the relevant companies and authorities.

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