Insurance agents targeted in ID theft scam

July 24, 2009

Agents should beware of scam.

Recently, insurance agents in several states have reported being the targets of a scam to collect their personal information.

According to representatives at the California, Colorado, Nevada and Oklahoma insurance departments, the scam seems to involve individuals posing as department employees, contacting agents and brokers by phone. The scammers claim the agent's license may be canceled or suspended due to improper paperwork, outstanding fees, penalties, etc.

The scam was first reported in California where individuals allegedly called licensed insurance agencies and represented themselves as employees of the California Department of Insurance. These individuals, pretending to be CDI employees, requested payment for a penalty fee for not completing a fictitious form they said the department sent to the agencies. The same individuals also requested that the insurance agencies provide credit card information over the telephone to make the penalty payment and to avoid cancellation of their license.

If you receive a telephone call requesting such information, or information about a bank account or Social Security number, do not provide the caller with any personal information over the phone. Contact your state Division of Insurance or your local law enforcement agency to report it.