How to Protect Yourself from Impersonation Scams

In this day and age, we are no strangers to scammers trying to hack our phones and scamming us of our hard earned money. Yet, we always see or hear of new cases of people getting scammed as the scammers become more creative in their methods of scamming people like you and I. These scammers have definitely “evolved” and “upgraded” their methods of scams by making them look as “credible” as they possibly can.

Here at DirectAsia, we believe knowledge is power and we hope that through this article, we can enable you to protect yourself from getting scammed. Read on to know how you can protect yourself from these scams.

What is an Impersonation Scam?

Impersonation scams are done by scammers impersonating people working in trusted businesses or government bodies who would pose as their advisors, company representatives or government officials. They will spread false information about your policies, tricking you into giving personal data or making financial transactions for policies or claims.

These fraudulent activities not only leave the victims in emotional distress, but it can also result in identity theft, unauthorised transactions and even the purchase of false insurance policies.

Now that we know what an impersonation scam is, let's dive into the process of an impersonation scam, how to identify one and what steps can we take to protect ourselves and our loved ones from falling into such scams.

Red Flags of Impersonation Scam

Unsolicited Contact:  Be cautious when you receive unsolicited calls, texts or emails from people claiming to be from any insurance company, trusted businesses or government bodies. Scammers like to impersonate as your insurance agent, customer service officer or bank officer to make themselves seem trustable.
 

High-Pressure/ Invoking Panic Tactics: Scammers would usually invoke panic by spreading false information about your policies or claims and would require you to pay for premiums before your policy “lapse” or paying for “policy excess” before they can process your claims. These scammers will use any tactics to push you into making hasty decisions on the spot, making you have this sense of urgency without giving you time to think it through.

As much as they may sound legitimate over the phone, never provide your personal information over the phone or via email.
 

Requesting personal details: As common as it is for trusted businesses to verify your identity before processing your requests, these scammers will also ask for personal or financial details to “verify” your identity. Personal information includes your NRIC, OTPs, bank account numbers or credit card details. The most obvious red flag would be when they request for your account password.
 

Request of Payment: After verifying your identity, they will claim that you will need to pay your premium or claims or even a small fee to complete the application, to prevent your policy from lapsing or to process your claim. The means of payment might be through QR code via Paynow or other unofficial methods. This includes, transferring you to a bank officer from a trusted bank or MAS officer to help you with the payment process.

Steps to Protect Yourself from Impersonation Scams

1. Verify the source: When in doubt, do not engage in the call. Look up for the official hotline the person claimed they are calling from. Call the official hotline to verify the call you received previously. 
   
   If you have received it via email, check the email address of the sender. Email addresses the scammers use will usually have spelling errors. Also, DO NOT I repeat, DO NOT click on any links in the email. However, in the event the email address seems legitimate, there might be a possibility that these scammers have manage to hack the business’s email. As a step of precaution, you should call the business’s official hotline to verify the legitimacy of the email received. 
   
   Speaking of links, it has been known that scammers also create fake websites that will look exactly like the official website of businesses. It is important to check the URL of the company’s website to prevent yourself from entering personal details for you to “login into your account” or trick you into calling the wrong hotline when you are doing verification. 
   
   Do not click on any links provided in unsolicited texts or emails. This will allow hackers to take control over your phone and access to all your personal information. 
   
   Alternatively, you can also open the ScamShield App, navigate to the “check for Scams” feature and input the suspicious phone number, link or message. The app uses AI to analyse and alert you if it appears to be a scam.
    
2. Never share sensitive information: Never share any personal information over the phone, text or email unless you have taken steps to verify that the source of the call, text or email is legitimate. Insurance companies, financial institutions and government bodies will never inquire of your personal details via unofficial channels.
    
3. Add 2 Factor Authentication (2FA) to your accounts: It might be troublesome to set up 2 factor authentication (2FA) for all your accounts, (e.g. bank, email, social media, etc) but a little effort goes a long way! In any case, if you do become a victim, these scammers cannot hack into your accounts as they do not have the 2FA codes to access. However, it is equally important to NOT share OTPs and 2FA codes to anyone. Else, there is no point in protecting your accounts with 2FAs.
    
4. Payment requests: Scammers would usually be good at giving fake reasons for payment of policies or for a claim. To make it more believable, they will have an “officer” from a trusted bank or someone from their “finance team” to help you with the payment. In some cases, they will require urgent payment and will have you pay via bank transfer or Paynow.
   Therefore, it is crucial to always verify the source of the call, text or email.
    
5. Offers that are too good to pass: Even though it is common for businesses including insurance companies to have offers and sales, be wary when an offer sounds too good to be true. Always, verify with the company to confirm if such an offer even exists.
    
6. Report the scam: If you have done any of the few points mentioned and realised you have almost fallen for a scam or are a victim of a scam, please report to the authorities and to your insurer immediately. 
   
   You can report by calling the Police Hotline: 1800-255-0000 or submit a report online. You can also use the Scamshield app or call the Anti-Scam Hotline at 1800-722-6688.
    
7. Share with your family and friends: Inform your friends and loved ones of the recent impersonation scam tactics regarding insurance in order to prevent them from becoming a victim. In this digital age, information travels faster than it used to, which also helps in reducing the number of people falling victim to scams by educating people of such scam tactics.
    

What should you do after being scammed?

However, if you suspect or find yourself being a victim of a scam, here are some important steps you can take quickly to protect yourself:

1. Gather Evidence: Collect screenshots of messages, email or transaction details, phone numbers or any identifying information of the scammers.
    
2. Notify your bank: Inform your bank immediately to try to freeze the transaction or your account (if possible), block your card or recover funds.
    
3. Contact your Insurance company: Notify your insurance company of fraudulent activity. This allows your insurer to quickly help to protect your account and flag for suspicious activities. 
   
   If you have encountered scammers claiming to be from DirectAsia, please notify us, through our hotline: 6665 5555 
    
4. Report Incident: If you have given personal information or have lost money, immediately make a report to the Singapore Police Force and to ScamShield. The authorities may be able to track down the scammers and prevent further damage.
   
   Reporting scams allows ScamShield to alert authorities of potential scam phone numbers and websites. This helps ScamShield to identify and expand its blocklist of known scam entities, preventing future scams.
    
5. Monitor your accounts: Keep track of your bank accounts and credit cards for any further suspicious activities.
    
6. Seek legal advice: If you feel that your personal information has been compromised or have lost a significant amount of money due to a scam, you can consider seeking legal advice on how to protect your identity and recover your funds.
    

As scammers are evolving in their scam tactics, it is essential that we continue to stay vigilant and educate ourselves to prevent falling into scams. If you have ever been a victim to a scam, don’t let it discourage you. Your experience serves as a lesson to stay vigilant and always remember to verify the legitimacy of the request.

Make sure that you share this blog article with your friends and family, to help them also become aware of impersonation scams, and hopefully prevent them from falling prey to it. If you have any questions related to car insurance, motorcycle insurance or travel insurance in Singapore, drop us an enquiry or call us at 6665 5555 and we’ll be happy to help!