The insurance industry’s reputation can’t seem to catch a break, and scam artists aren’t helping.
In the latest of several mail scams, victims receive what appears to be an official letter written in simple terms with a check in an amount under $5,000. The letter states that the victim has won $500,000.
Don't be fooled says Farmers Insurance Group of Companies. "You are asked to cash an enclosed check to cover your expenses and then you must call a prize disbursement officer to collect" says Melissa Arnson, corporate security investigations manager, Group Security Americas, Farmers Insurance Group.
"When you call, you will be asked to send a large portion of the check to an address to cover expenses in getting the $500,000 to you. Don't do it,” she adds. The check is bogus and will bounce when deposited, and if you send a personal check, money from your bank account will disappear."
Arnson described a surge in scams hitting across America, which include letters and fake Farmers checks to consumers telling them that they are in the UK & North American Consumer Promotions Draw—cash the check and send a portion of it to the address listed; or others receive a notice saying here is a check for you to become a Mystery Shopper in our Consumer Service Evaluator research project—cash the check and send a large portion to get you started; or many receive a bogus check and notice telling them that they have won the Mega Million Sweepstakes.
"All of these scams are designed to steal your money," Arnson emphasizes.
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Arnson offers this advice: "If you receive what appears to be a Farmers Insurance check and an offer asking you to pay fees, taxes or other charges from an enclosed check, toss the letter and check away." She adds, "We are working with authorities in all states to try and catch the scam artists who are a threat to the livelihood of hard working people."
