A recently discovered scam has left people cheated and their wallets empty. The advertisement appeared repeatedly quite a few times in newspapers with a few big insurance company names thrown in to add value to the advert. It consistently claimed offering the cheapest possible auto insurance rates to clients. Attracted by the possibility of getting hold of cheap rates, several unsuspecting individuals paid up for these auto insurance policies only to find that the whole thing was a sham. The clients contacted the company (usually named as ‘Smith and sons or Stone and sons), which then proceeded to take down all details of the client like driving history, contact details. Afterwards they would forward a quote that was significantly lower than the normal industry quotes for the same kind of vehicle. Once the customer was sufficiently interested to pay up, they were asked to wire in the money by Western Union or wire transfer to the company.
After the lapse of a week, the client received a slip by post on which his details are accurately given according to his own information. But the catch is that there was no insurance coverage policy along with this slip. Thus, if the customer was involved in an auto accident, he was not covered by the auto insurance at all. Furthermore, the company had used disposable and prepaid cellular phones, and thus the police have been unable to trace their whereabouts. The best thing the police could have done was to warn the public of getting taken in by such false companies.
As a result, the police have suggested some means to distinguish between illegitimate companies and the genuine ones. If a company is quoting rates that do not bear any relation to normal rates, then one has to be wary of their authenticity. Similarly if the company claims that all clients will be accepted, then again that should be considered a warning signal. All reputed insurance companies will offer insurance only after verification of your details. Finally, if the company requests you to wire your money through Western Union or Money Gram, then be cautious before paying up.
