[Insurance scams] Man loses HKD820,000 in fake insurance text message trap – 5 tips to help you fight off fraudsters
Lifestyle2025-11-14
6 Mins Read
You might be familiar with scams involving ‘fake police officers’ or ‘imitation bank officials’, but have you heard about the newly emerging ‘insurance text message scam’? One middle‑aged man, misled by a fraudulent message, ended up losing as much as HKD820,000. This type of scam isn’t fabricated; it is carefully designed and methodically executed, making it difficult to guard against. The best way to safeguard your finances is to understand how these scams work and learn how to protect yourself.
The evolution of traditional scams: How do insurance scam texts catch people out?
Common scam tactics in society, such as impersonating government departments or making fake bank calls, have already deceived many people. These messages often use urgent language like 'emergency', 'suspicious account activity', or 'court warrant' to unsettle their targets. Recently, similar tactics have evolved further, with fraudsters using 'insurance policy about to expire' as a pretext to exploit those who tend to trust online services.
One particularly shocking real-life case involved a middle-aged man who received a text message claiming to be from an insurance company. The message stated that his policy was about to expire and would automatically renew unless he took action. He was asked to click a link to check the details, and through a series of steps that followed, he ended up transferring HK$820,000 to the fraudsters' account. When this case came to light, it attracted significant attention and discussion.
How insurance text message scams work?
1. Distribution of fake customer service messages
The scam usually begins with a message that appears to come from a legitimate source Fraudsters impersonate staff from banks, payment platforms, or insurance companies and send notifications via platforms such as WeChat, SMS, or WhatsApp. These messages typically claim that the user’s insurance policy is about to expire. They often use urgent language and include a link or fake ‘customer service’ hotline number, pressuring the user to act immediately.
2. Directing victims to click phishing links or call fake hotlines
Clicking the link takes the user to a carefully forged fake website Believing the site is genuine, the user may enter sensitive information such as login details, ID numbers, or bank account data. Alternatively, some messages ask the user to call a fake ‘customer service hotline’ controlled by scammers, who then use conversational tactics to extract additional personal and financial details.
3. Common fraudulent steps
Fraudsters may escalate the scam by instructing the user to transfer funds to a so‑called ‘safe account’ to prevent supposed automatic payments, or by claiming that a new account must be set up for security purposes. Through step‑by‑step instructions, the victim is gradually manipulated into transferring money to the criminals. By the time the victim realises something is wrong, the funds are long gone and impossible to recover.
Why do people fall into these traps so easily?
1. Limited understanding of digital technology
While many people use smartphones or WeChat daily, their understanding of website security and scam tactics is often limited, making it difficult to spot subtle red flags.
2. Difficulty distinguishing phishing sites from legitimate websites
Fake websites are often professionally designed, with addresses and layouts that closely resemble genuine official sites. This makes them highly misleading for the average user.
3. High trust in official-looking communication
Scammers exploit the trust people place in formal, official-sounding language, using the guise of ‘customer service’ to legitimise their fraud.
4. Lack of vigilance
Many people are not wary of unknown callers or messages. This is especially true for automated voice calls or voicemails, whose ‘robotic’ tone can be mistakenly perceived as part of a legitimate system.
5. Urgency to resolve problems
When faced with a perceived problem concerning their finances or insurance policy, people often try to resolve it immediately, which can cause them to lower their guard.
6. Susceptibility to pressure tactics
Fraudsters often use urgent phrases such as ‘expiring immediately’, ‘automatic payment’, or ‘involved in a case’ to create anxiety, leading victims to override rational judgment.
5 anti-scam tips from the police
1. Be alert to fake call tactics
According to the police and the Insurance Authority, official organisations will not use pre‑recorded voice messages to notify the public about policy issues, nor will they ask people to handle matters via third‑party links.
2. Always verify information yourself
Do not trust phone numbers or web pages provided by the caller. Instead, proactively contact the insurance company’s official customer service. If necessary, visit the company’s official website homepage to find the correct contact details.
3. Raise awareness among family and friends
Scammers often target middle‑aged or elderly individuals, so it is especially important to raise awareness within your family. Sharing anti‑fraud information can help loved ones avoid becoming victims.
4. Contact your insurance company directly about policy matters
Regardless of the message source, if it involves policy renewal, premium payments, or refunds, it should be handled only through official channels. This includes using the insurance company’s official mobile app, hotline, or visiting in person.
5. Report suspicious activity to dedicated hotlines
If you suspect a scam, call the Anti‑Scams Helpline at 18222 or the Insurance Authority hotline at 3899 9983 for immediate assistance and verification. In addition, the Hong Kong Police have launched anti‑fraud tools such as the ‘Scameter’ search engine and the ‘Scameter’ app to help the public identify scams and online traps.
Practical advice to prevent insurance scams
1. Learn to identify phishing messages and fake websites
Scammers often use an ‘official tone’ to disguise their true intentions, with messages claiming your ‘policy is about to lapse’ or that ‘overdue payments will be automatically debited’. To distinguish genuine from fake, pay attention to these details:
- Check if the phone number starts with a ‘#’ or unfamiliar letters; numbers like ‘+852 xxxxxxxx’ are often sent via virtual communication systems.
- If you are a registered vehicle owner, you can use the ‘Motor Insurance Database Enquiry System (MIDAS)’ to verify your policy’s authenticity.
- Look for websites that start with HTTPS and display a padlock symbol, and check the design quality for professionalism and language accuracy.
- For example, AXA will send messages with registered sender names such as ‘#AXA’ or ‘#AXA HK’ to customers using local mobile services. If you receive a message from a known registered sender in the ‘SMS Sender Registration System’ but the number does not start with ‘#’, it could be a scam. Remember, do not trust messages or emails from unknown senders. You can also download the Emma by AXA mobile app and enable ‘Push Notifications’ to receive accurate official information.
2. Understand common scam tactics and specific examples
Real-life examples can help you recognise suspicious messages. For instance, a victim might receive a message, supposedly from their insurer, stating their cover is about to expire and urging them to click a link to update their details. This leads to a phishing site where entering bank login information results in stolen funds. These scams often share these features:
- Luring you to click a ‘verification link’ or ‘renew now’ button.
- Requesting your ID card number, bank account details, or One-Time Passwords (OTP).
- Using urgent language like ‘Insurance cover terminating soon’ or ‘Urgent Notification’ to create pressure.
3. Stay calm and don't succumb to urgent language
The most common tools in a scammer’s arsenal are ‘fear’ and ‘urgency’. Messages often claim you will lose money or have your account frozen if you don't act immediately. When you receive such a message, remember not to react hastily:
- Pause for a few minutes and calmly consider the message's source.
- Do not click any links or immediately call back the number provided.
- Discuss it with a friend or family member, or proactively contact the organisation via its official helpline to verify the claim.
4. Recognise the psychological tactics used by scammers
The scripts and messages scammers use are designed to cause panic, leaving you no time to think. For example:
- Deliberately mentioning ‘direct debit’, ‘involving the police’, or ‘account freezing’.
- Pretending to be helpful while applying persistent pressure: 'You'd better sort this out quickly, don't let your policy get cancelled.'
- Frequently using imperative phrases like ‘You must do this now’ or ‘Operate immediately’.
Staying rational and not letting the tone dictate your judgment is key to preventing fraud.
5. Strengthen your cyber security awareness
Many scams exploit online vulnerabilities or leaked data. Enhancing basic cyber security awareness is crucial:
- Install antivirus software and a firewall on your devices.
- Avoid downloading apps from unknown sources or clicking on shortened links.
- Regularly update passwords for your online banking and insurance portals, and enable two-factor authentication (2FA).
6. Avoid sharing personal and financial details casually
Official organisations will never ask for your full bank account number, OTP, or passwords by phone or text. Any such request is almost certainly a scam.
- Never disclose any personal information before verifying the other party's identity.
- When performing important actions, always log in directly through the organisation's official website or mobile app – never use links provided in a message.
- Share these scam prevention tips with friends and family to raise collective awareness.
Fighting fraud together: Safeguarding our financial security
While fraud tactics continue to evolve, effective prevention is still achievable by staying vigilant and learning to recognise their methods. Even if you don’t consider yourself a ‘tech novice’, you could still be a target for scammers. Rather than dealing with regret afterwards, it is far better to exercise caution in advance.
If you have friends or family members who are less familiar with technology, consider proactively sharing these fraud prevention tips with them. In today’s era of widespread scams, only by collectively raising our awareness and vigilance can we build a protective shield together — safeguarding both our hard‑earned wealth and our peace of mind.
Source:
Anti-Deception Coordination Centre (https://www.adcc.gov.hk/en-hk/home.html)
Insurance Authority (https://www.adcc.gov.hk/en-hk/home.html)
Hong Kong Police Force (https://www.police.gov.hk/offbeat120/scam/11_hk-insurance-sms-scam-guide.html)
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
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