Beware of Life Insurance Cash Out Scams

Recently individuals in Korean, Vietnamese, and Latino communities have received  letters from a “lawyer” in Canada regarding cashing in on someone else’s life insurance policy. The letters appear to be from a law firm who claims to have a deceased client with an unclaimed policy worth millions. They further go on to claim that since the recipient has the same last name or nationality as the deceased, the firm can add their name to the policy. The millions will then be split between the recipient, their firm, and some charity. The only thing the recipient has to do is keep it a secret and reply to the email address in the letter. But in reality, it is just another scam. There is no million dollar policy and the law firm is a scammer looking to con you.

Schemes like this are just one of many ways scammers try to get personal information or money. Be very careful when anyone contacts you out of the blue offering you an opportunity that seems too good to be true. Protect your information because once it is in the wrong hands, it could cost you a lot. Scammers use your personal information, such as your identification, social security number, financial information, etc., to commit fraud and identity theft. Here are some helpful tips to protect you:

• Don’t reply. Be careful of the information you share with others. Never give your personal information to anyone that you have not checked out. Sometimes a simple internet search will inform you that the offer is a scam.
• Don’t Pay. Never send cash, gift cards, wire money, cryptocurrencies or funds through payment apps to anyone that asks, especially if you do not know them. Scammers often demand payments through these methods because it is difficult to trace and hard to recover money sent through these methods.
• Spread the Word. Letters like these should be reported to the authorities. You should also let your neighbors, family, friends, and acquaintances know not to fall for these tactics. Share these tips with your community so others don’t fall victim.
• Report It. Start with filing a complaint with Business Consumer Alliance. We frequently warn the public about reoccurring and trending scams. You should also contact your local authorities such as law enforcement, consumer affairs, and district officials, so they are aware of the scam and can warn communities to be on guard. You may also visit reportfraud.ftc.gov to report scams.

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