Guangdong financial regulators have issued an urgent warning about a new scam targeting policyholders, where fraudsters misuse the name of regulatory authorities to deceive consumers.
The scheme involves criminals illegally collecting information on dividend policies, long-term savings, and protection-type insurance contracts. They then contact policyholders through phone calls or social media platforms, posing as official representatives.
According to the advisory released on August 20, the scammers falsely claim that the insurance company holding the consumer's policy has been taken over by a third-party insurer due to numerous complaints. They assert that this transition was ordered by financial regulators, and that the new company is required to reach out to clients to terminate their existing policy services early.
Once trust is established, the fraudsters offer to help consumers with an "early settlement" process. They instruct victims to pay a premium to this supposedly regulator-designated third-party insurance company, promising that the full amount of their original policy premiums will be refunded in one lump sum afterwards. The scammers claim that the third-party company will supervise or fulfill this "refund" obligation.
Guangdong regulators are emphasizing that no financial regulatory body has ever authorized, delegated, or approved any organization or individual to conduct personal insurance business under the guise of "early policy termination," "early premium settlement," or "policy surrender."
Consumers are being urged to exercise extreme caution with information from non-official channels. Authorities specifically advise against clicking on or scanning payment codes sent via WeChat from unknown contacts that purport to be from third-party insurance companies.
Anyone who suspects they have been targeted or has encountered potential criminal activity should report the matter to public security authorities immediately. Victims are also encouraged to preserve all evidence to assist with police investigations and maximize the chances of recovering any losses.