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Beware: Identity Theft Strikes Independent Agencies

Identity theft criminals are now targeting insurance agencies.

Posing as insurance department regulators, scammers are targeting insurance agents/brokers with the nefarious goal of getting access to their credit card numbers, according to reports from Chubb Personal Insurance and IdentityTheft911.

These scams have hit seven states including California, Ohio, and New York, according to the New York State Department of Insurance. The Insurance Journal lists Oklahoma, Idaho and Nevada as other states where fraud attempts have occurred.

The scam involves individuals who phone agents and brokers, pretending to be state insurance department representatives, noted the NY insurance department. The callers tell potential victims that their insurance licenses will be cancelled because of outstanding paperwork or fines—unless they provide credit card numbers and personal information to pay fines.

“It’s important for agents and brokers in New York State to be aware of this because these types of scams typically travel across the country,” said Kermitt J. Brooks, acting superintendent of insurance for the state of New York.

“It is not the policy, practice or procedure of the New York State Insurance Department to solicit any personal information over the phone. Agents or brokers who receive phone calls like this should immediately contact local law enforcement authorities and the Insurance Department’s Frauds Bureau,” noted Brooks. Other state regulators made similar statements.

Chubb Personal Insurance and IdentityTheft911 advised the following steps if someone claiming to be from a licensing agency calls or e-mails asking for sensitive information:

1. Request that the caller put the request in writing.

2. Hang up.

3. Call the government agency that licenses you. Ask about the status of the insurance license.

4. If not, report the attempted scam to the appropriate state insurance department. Also, file a complaint with local police.

Special Note:  AMSUG members in several states have an additional resource available to them to check their license status. In Indiana, Minnesota, Oklahoma, South Dakota, Utah and Vermont, agents can verify their licensure through Sircon, a Vertafore company.