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Hi-tech Frauds Have Moved From The Banking Sector To Insurance

IamCheated.com Research Team | June 08, 2018  3:58:pm

Frauds in the banking sector are quite common these days. Fraudsters use a number of tricks to steal your hard-earned money. Fraudsters collect your personal banking information through Smishing, Phishing, Vishing or any other means. The most common trick used by fraudsters is they call innocent people by posing as bank executives and collect personal banking information, to conduct fraudulent banking transactions. These kinds of frauds are not just happening in the banking sector, but also in the insurance sector as well.

The insurance sector which runs mainly through agents on the offline model is falling victim to new types of frauds. Many companies have come up with insurance chatbots to make insurance buying and selling really simple. But, fraudsters are misusing this technology to cheat innocent people.

Fraudsters redirect customers from genuine websites of the insurer to a phishing website, by somehow making them click on a Pop-up that was built over their chatbot. When customers use chatbots to assist them in buying an insurance policy, fraudsters are using this technology to collect personal banking information from customers.

A smart trick used by fraudsters is they call people claiming they are from the Insurance Council and tell them that their existing policies could be converted into a mobile policy, which can be redeemed at any ATM of their choice for an instant loan. After convincing people over the phone, fraudsters send them a link of an insurance website, which claims to be issuing ‘instant mobile loan policies’. If they click on the website, they will be directed to a phishing website which looks exactly like original companies registered website.

See Also: Top Mis-selling Tricks By Insurance Agents

Another trick used by fraudsters is policyholders will be asked to surrender their policies to get "attractive bonuses". When they click on the link, hackers will capture personal data.

Insurance Regulatory and Development Authority (IRDAI) and Insurance Council of India have been cautioning policyholders at regular intervals, to be careful of fraudulent calls and malicious links and websites. So, whenever you receive an email with a suspicious link, do not click on it. Even if you click on the link, make sure you do not provide personal banking information.

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