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Fake insurance refunds and 'KYC update' demands

Someone says you are owed a policy refund or must update your KYC, and uses that to take money or details.

How it works

  • A caller says an old insurance policy has matured or been mis-sold and that you are owed a refund or bonus. They ask for a 'processing fee' or tax to release it.
  • Others claim your wallet, account or SIM will be blocked unless you update your KYC (identity details) through a link or by installing an app.
  • The fee is paid, new fees follow, and the refund never arrives. The KYC link steals your login or data.

Warning signs

  • Any refund that needs a fee from you first.
  • A caller who already knows some of your policy details (these can come from leaks).
  • KYC or identity updates demanded by call, message link or app instead of through the official branch, website or app you already use.
  • Pressure that the account will be blocked today.

What to do

  • Contact your insurer or provider using the number on your policy or their official site, and ask whether any refund is due.
  • Do KYC updates only through the official app or in person.
  • Never pay a fee to receive money. Report and share the details with family.

A made-up example of what you might hear

'Your old policy has matured and you are owed a bonus. A small tax payment is needed first to release it today.'

If you already paid or shared a code

  • Call your bank or card issuer straight away and ask them to block the card, account or payment. Use the number on the card or the official website.
  • Change passwords for any account that may be affected, starting with email and banking. Turn on two-step verification.
  • Report it to the authorities (see the list below). Keep screenshots, phone numbers, account details, transaction IDs and times.

Where to report

Author and editorial reviewer: Prashant Nandkishor Maheshwari, 2026-10-18. Education only. Rules and reporting channels differ by country.