Insurer Hollard has warned that insurance sale, claim, and recruitment scams are on the rise in South Africa, with holidaymakers at particular risk as they tend to let their guard down over the festive season.
The group advised policyholders to familiarise themselves with the latest insurance scams and take proactive action to protect themselves from falling prey to fraudsters who are always lurking in the shadows, determined to rob them of their hard-earned money.
According to Hollard, the outbreak of Covid-19 triggered a spike in fraudulent activities and noted that this time of the year always sees a rise in unscrupulous schemes as many people let their guard down as they get busy with festive season plans.
Outlining some of the insurance swindles consumers should be wary of, Hollard said there had been a steady increase in insurance sales and claims scams over the past few months.
Insurance sales scams refer to a customer applying for a loan and are requested to make a deposit into the scammer’s bank account. The scammers claim that the deposit is required to conduct background checks to process the client’s application.
The unsuspecting customer is then lured to a website purporting to be an official insurance website, where they then divulge their bank account details.
Another scam – the insurance claim scam – occurs when a policyholder lodges a claim with an insurer and is contacted by a caller who claims to be an employee at the insurance company.
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