If you’re in the market for insurance, know that scammers are in the market too. Many people find the insurance marketplace confusing, intimidating, and even frustrating, all feelings that scammers take advantage of. Often under the guise of lending a hand or providing a low-cost quote, scammers prey on insurance-seekers by stealing their personal info, Social Security numbers, and money. Here, we’ll cover several of the insurance scams out there—and we’ll start with a list compiled by the Federal Trade Commission (FTC).

Five signs of a health insurance scam

Health insurance scams are designed to trick you into giving up money or personal information, and often surface during open enrollment periods or after major life events. Knowing the warning signs can help you avoid fraud and choose coverage with confidence. Here are five key red flags to watch out for:

1. Scammers say they’re from the government and need money or your personal info

Government agencies don’t call people out of the blue to ask them for money or personal info. No one from the government will ask you to verify your Social Security, bank account, or credit card number, and they won’t ask you to wire money or pay by gift card or cryptocurrency. If you have a question about the Health Insurance Marketplace, contact the government directly at HealthCare.gov or 1-800-318-2596.

2. Scammers try to sell you a fake medical discount plan

Medical discount plans charge you a monthly fee for discounts on specific medical services or products from a list of participating providers. They’re not a substitute for health insurance. While some medical discount plans provide legitimate discounts, others take people’s money and offer very little in return. If you’re considering one, check out every claim the plan makes, including whether your doctor participates in the plan. Be sure to get the details of the discount plan in writing before you sign up.

3. Scammers want your sensitive personal information in exchange for a price quote

In the Affordable Care Act’s (ACA) official government site HealthCare.gov, you can compare prices on health insurance plans, check your eligibility for healthcare subsidies, and begin enrollment. The site will only ask for your monthly income and your age to give you a price quote. Never enter personal financial information like your Social Security, bank account, or credit card number to get a quote for health insurance. You’ll be setting yourself up for robocalls or much worse — identity theft.

4. Scammers want you to pay for help with the Health Insurance Marketplace

The people who offer legitimate help with the Health Insurance Marketplace — sometimes called Navigators or Assisters — are not allowed to charge you and won’t ask you for personal or financial info. Go to HealthCare.gov and click “Find Local Help” to learn more. Also, if you or someone you know is a Medicare recipient, you can check out our article dedicated exclusively to Medicare scams.

Other insurance scams to look out for

While health insurance scams are common, fraud can occur across all types of insurance. Scammers may pose as agents, offer fake policies, or inflate claims to steal money or personal information. These schemes can be sophisticated and hard to spot, especially during stressful times. Being aware of the broader range of insurance scams can help you stay protected and make smarter, safer choices when managing your coverage.

Ghost broker scams

Here, scammers pose as insurance brokers who take insurance premiums, pocket the money, and leave victims thinking they have coverage when they do not. In some cases, they apply for a genuine policy, only to cancel it later, while still taking premiums from the victim. Many victims only find out that they got scammed when they attempt to file a claim.

Life insurance “beneficiary” scams

In these scams, victims receive an official-looking email that says they’re the sole beneficiary of a life insurance policy. The email is often a bit light on details, yet it spins a story of a distant relative with no immediate heirs, adding a sob story about how difficult it was to track the victim as the “next of kin.” To receive the insurance payout, all the victim needs to do is hand over some personal info, maybe like a Social Security number for “verification” and account details to transfer the funds.

Policy cancellation scams

These work like any number of other account-based scams, where a scammer pretends to be a customer service rep. In the insurance version of it, scammers email, text, or call with some bad news — the person’s policy is about to get cancelled. Unless, of course, the victim hands over all kinds of personal and financial info to keep the policy active. It’s just one more way that scammers use urgency and fear to steal info from their victims.

Avoiding insurance scams

Knowing how to spot common tricks and understanding what legitimate insurers will—and won’t—do can help you avoid costly mistakes and protect both your money and personal information.

For health insurance, visit a trusted source

Working with legitimate entities such as HealthCare.gov or your state marketplace helps guarantee that you’ll get the kind of fully compliant coverage you want.

For any insurance, research the company offering it

Run a search with the company name and add “scam” or “fraud” to it. See if any relevant news or complaints show up.

Know who you’re dealing with

Some insurance companies don’t provide coverage directly to consumers. They work through independent brokers. So just like you’d research an insurance company, you should research any broker you’re working with. A good place to start is to visit the site for your state’s insurance commission. It should have resources that let you look up the insurance companies, agents, and brokers in your state.

Guard your personal info

Never share your personal info, account details, or Social Security number over the phone, text, or email. Make sure you’re really working with a legitimate company and that you submit any info through a secure submissions process.

Block bad links to phishing sites

Many insurance scams rely on phishing sites to steal personal info. A combination of our Web Protection and Scam Detector can steer you clear of them. They’ll alert you if a link might take you to one. It’ll also block those sites if you accidentally tap or click on a bad link.