Insurance brokerage companies are sounding the alarm about scammers posting deals on social media that are too good to be true.
Scammers exploit social media with fake insurance deals.
These deceptive advertisements often offer significantly reduced premiums, luring unsuspecting consumers into purchasing fraudulent insurance policies.
Syeed, a Dubai resident and an engineer at a multinational firm, recently fell victim to such a scam. After searching online for an affordable motor insurance policy, he found an enticing offer on social media. A comprehensive insurance policy might be purchased for about 40% less. After seeing such a low-priced substitute posted, I contacted the seller and made the transaction." Syeed recounted.
Syeed realized he had been duped when he attempted to make an insurance claim following damage to his car. To his shock, he discovered that the insurance certificate he received was fake. "Unfortunately, the "full coverage" insurance I had bought was actually third-party coverage, and it wasn't enough to pay for the repairs," said Syeed. Additionally, he could no longer contact the agent as the phone number was disconnected.
Deceptive Tactics
Insurance brokerage firms warn that scammers are leveraging social media to post offers that seem unbelievably good. Motor insurance premiums in the UAE are regulated, with clearly defined discounts. "
According to industry experts, these deceptive policies have become more prevalent following recent rate hikes by some insurance firms. Anas Mistareehi, CEO of eSanad, emphasized the importance of skepticism. as It is important to exercise caution when seeing advertisements that offer rates that are substantially lower than usual. Any advertisement promising discounts of forty or fifty percent is probably deceitful if reliable suppliers are only offering a twenty percent discount.
Scammers use various tactics to create fraudulent insurance policies. They might create fake websites and ads, offer unrealistically low premiums, use social engineering, and forge documents. "As the old adage goes, "it tastes too good to be true," said Maitra.
Identifying legitimate advertisements
The only way to stop these scams is to keep raising awareness about them. Insurance in the United Arab Emirates can only be sold by authorized businesses, brokers, and agents.
The easiest way to protect yourself from these frauds is to only get insurance from reputable and trustworthy companies. You may stay safe from these traps by avoiding social media ads that offer enormous discounts. Before making any kind of purchase, make sure the supplier is legitimate. "The safest ways to secure genuine insurance coverage are through trusted platforms and direct contact with reputable insurance companies," Mistareehi suggested.
Experts recommend several steps to verify the authenticity of insurance offers. Customers should compare premiums with those from authentic sources; significantly lower rates can be a red flag. Additionally, they should check the validity of the organization selling the policy. Many insurance companies now include QR codes on quotes or policies, which can be scanned to verify the policy’s authenticity. If no QR code is provided, customers should receive the original policy schedule from the authorized company’s email.
Residents should also check reviews and ratings to gauge a provider's credibility. Ensuring the provider has a verifiable physical office location is important, and payments should only be made to legitimate company accounts, not personal ones. The last step for customers is to call the provider's landline number to confirm their legality and presence.
While the allure of cheaper insurance policies on social media can be tempting, it’s crucial to exercise caution and diligence. By following these guidelines and being aware of common scam tactics, consumers can protect themselves from falling victim to fraudulent insurance schemes.
