A multi-state fraud ring is signing up older adults for life insurance policies without their knowledge, and Oregon's insurance regulator says it has detected the operation in the state.
The Oregon Division of Financial Regulation issued a warning July 2 about the scheme, which uses telemarketing calls to harvest personal information from victims before licensed insurance agents submit fraudulent applications in their names.
TK Keen, Oregon's insurance commissioner and DFR administrator, said insurance companies are absorbing heavy losses because they pay upfront commissions to agents before any premium is collected.
Keen also warned that victims' stolen personal information puts them at risk for additional scams down the line.
The fraud unfolds in stages. Victims receive multiple telemarketing calls and, during conversation, share personal details. That information is passed to licensed insurance agents participating in the ring, who then cold-call the victim to collect any remaining data needed to complete a life insurance application.
The application is submitted and a policy issued without the victim ever agreeing to it. In many cases, multiple policies are taken out against a single person. The fraud is typically discovered only when the insurer contacts the victim to collect the first premium payment.
The DFR did not disclose how many Oregonians have been affected by this specific ring or which insurance companies are involved.
The warning fits a broader pattern. In Oregon, more than 53% of reported fraud losses in 2024 came from people aged 60 and over, according to FTC Consumer Sentinel data. Statewide, Oregonians reported $126 million in fraud losses across more than 30,000 cases that year.
DFR recommends these steps:
- Don't answer calls from unknown numbers.
- Hang up on robocalls or high-pressure callers.
- Never share personal identifying information with strangers over the phone.
- Ask banks and credit card companies to place fraud alerts on accounts.
- Monitor financial accounts regularly.
- Sign up for the National Do Not Call Registry at DoNotCall.gov.
- Contact the local Area Agency on Aging for help managing routine payments.
The agency also advises that power of attorney should only be granted to someone fully trusted, after consulting an attorney, with authority limited to what is strictly necessary.
Salem-area residents who suspect fraud can reach DFR consumer advocates toll-free at 1-888-877-4894 or by email at [email protected].
