Insurance Agents are being targeted in identity theft scam as callers posing as regulatory agents threaten fines and loss of license.
Insurance agents throughout the U.S. are being advised to be wary of telephone calls from people posing as insurance department regulators. This activity has been identified as a scam designed to obtain personal information for the purpose of identity theft. Several state insurance departments, including Oklahoma, Idaho, Nevada, and California, have reported similar scam attempts during recent months.
According to a report issued by the Nevada Department of Insurance, the scammers tell insurance agents that they represent a state regulatory agency. They lead the agents to believe they owe a penalty fee for some infraction, and they demand payment over the phone via credit card. They also ask the agents to provide their social security numbers and dates of birth, purportedly to avoid cancellation of their licenses.
Although the scam has only been reported in about half a dozen states so far, officials warn that it is likely to spread quickly. If you receive a call asking you to provide your social security number or credit card information, you are advised to contact both local law enforcement officials and your state’s department of insurance. It is not the practice of any legitimate, state-sanctioned insurance department to solicit such information by phone.