Georgia Insurance Commissioner Warns Of Life Insurance Scam

Posted at 6:06 PM, Feb 03, 2015
and last updated 2015-02-03 18:06:00-05

ATLANTA, Ga. (WTXL)--Georgia's insurance commissioner is asking people to be on alert for calls from people claiming to have life insurance proceeds available to them.

Ralph Hudgens says his fraud unit has found that the calls are part of a scam. 

“My office has received complaints from consumers who were scammed out of thousands of dollars by individuals claiming to be insurance company representatives,” said Hudgens. “These low-life scammers are telling consumers that their deceased relative had life insurance that lapsed, but if an immediate payment is made to reinstate the policy, they will become the beneficiary.”

Here's more from his office: 

· The scammer instructs you to submit a payment in the form of pre-paid money cards to immediately reinstate the policy.

· The scammer explains that the transaction will need to be completed within a few hours and that they will call you back at a specific time. You are then told to go to a CVS or Rite Aid pharmacy and pick up various numbers of Green Dot’s MoneyPak cards and upload different amounts of money onto each card.

· The scammer then call you back at the designated time and instruct you to scratch the back of the MoneyPak cards and read to them the concealed 14-digit serial numbers.

· By reading the concealed number to the scammer, it allows them to transfer the money immediately to their account without having the actual cards.

 Commissioner Hudgens recommends that if you receive these types of calls, hang up and dial up his consumer services division at 800-656-2298.