13 February 2024 , 09:58
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Romance scammers are pressuring victims to make false insurance claims in a new fraudulent scheme, the Insurance Fraud Bureau (IFB) is warning.
Victims may be coaxed to take out bogus insurance policies and then enticed to make counterfeit claims, enabling crooks to pocket the payouts, the IFB warned. The scam typically commences with minor claims which escalate over time, trapping victims in a cycle of criminal financing.
Insurance fraud is a grave offense and culprits could land on the Insurance Fraud Register (IFR) for five years even if they dodge prosecution. Being listed on the IFR, a record of known insurance criminals that insurers refer to when issuing new policies, could have serious repercussions.
Insurers can increase premiums due to the perceived risk or refuse coverage entirely, leaving individuals unable to drive, jobless or struggling to find employment. Existing probes reveal this type of fraud usually ties up with other major crimes, stated the IFB.
Summing up, IFB intelligence and investigations manager, Shelley Comb, said: "Being convicted of insurance fraud can have life-changing consequences; don't risk it all to line someone's pocket."
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