As telecommunication fraud continues to grow exponentially, with reported losses in 2022 of $530 million in Canada^[1] and nearly $40 billion in the United States^[2], it's never been more important to stay informed and vigilant. There are many different phone scams that contributed to these enormous numbers. Among them are insurance phone scams.

What are Insurance Phone Scams?

Insurance scams refer to scammers who pose as insurance agents or representatives attempting to sell fake insurance policies or requesting payment for fees or services. In other cases, they may threaten to cancel their victim's policy if certain actions aren't taken. As you can see, the details can vary, but one things remains consistent; scammers are after their victims' money or personal information, including social security numbers, credit card numbers, and bank account information.

Auto Insurance Scams

The most prevalent insurance scam these days is the auto insurance scam. At its peak, potential auto insurance scams reached over 44M captured calls, with calls spiking in the middle of each month. Out of the millions of potential scam calls captured, 5.3% were related to the auto insurance scam, which worked out to 233,200 total calls in just three months.

Other significant indicators of a successful scam are the pickup rate and duration of their attempted calls. Here are some quick facts on this pertaining to auto insurance scam calls:

• The average call time of attempted auto insurance scam calls is approximately one minute.
• Answered insurance scam calls can reach lengths of up to 5 minutes long.
• Nearly 20% of captured global insurance calls are answered.

Tips to Protect Yourself from Insurance Phone Scams

1. If you receive a call or text from an unknown number, use Whois by SIPSTACK to see its risk rating score. This will allow you to determine whether or not it is safe before you decide to respond.
2. If you find out the number does belong to a scammer, rate and review it in the Whois portal, so members of your community can protect themselves as well.
3. Create an account and verify your number with Whois. This will put you on the "Do Not Call List" from verified spam numbers and other unwanted telemarketers.

How SIPSTACK Fights Fraud

Using the latest technology and machine learning, SIPSTACK's systems authenticate all activity in real time against variables that affect your security. When a carrier implements SIPSTACK's Smart CNAM, they are able to customize a threshold for calls to pass through, based on their specific needs. Additionally, Whois by Sipstack is the biggest and best AI-powered reverse lookup database that individuals can use to help eradicate spam. At SIPSTACK, we take an active role in ensuring we are building a secure and connected tomorrow. Contact us today to learn how you can protect yourself from spam.

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