State warns about life insurance fraud ring targeting older adults

July 1, 2026

The Oregon Division of Financial Regulation is warning people about a recently detected fraud ring that is signing up people for life insurance without their knowledge or consent. The fraud, which targets mostly older adults, has been found in multiple states, including Oregon.

Here is how the fraud, which involves licensed insurance agents, works:

Victims receive multiple telemarketing calls in which they tell the telemarketer personal information. The information collected during these telemarketing calls is then shared with the insurance agents participating in the fraud ring. The agents then cold call the victim to obtain any additional personal information needed to complete an application for a life insurance policy, which gets submitted without the victim's knowledge or consent. The life insurance policy, or in many cases multiple policies, is issued and the agent is paid a commission for the sale of the policy, even though the policy has not yet been paid for at this point. When the insurance company attempts to collect the first premium payment, the fraud is discovered.

"Because the insurance company is paying upfront commissions to the agents, the companies are experiencing high losses as a result of this fraud ring," said TK Keen, Oregon insurance commissioner and DFR administrator. "Additionally, the victims of the fraud ring are being targeted for other scams and schemes, putting them at risk for future fraud."

DFR has a website with tips to help protect yourself from fraud. Among those tips are the following:

• Sign up for the National Do Not Call Registry.
• Do not answer the phone if you do not know the caller. If you do answer, hang up if it is a robot, a stranger, or someone pressuring you.
• If you do not know the sender, do not respond to texts, emails, or click on a link.
• Question everything. If you do not understand something, do not sign it or agree to it.
• Never give personal identifying information to strangers.
• Ask your credit card company and bank if they can put a fraud alert on your accounts.
• Monitor your financial accounts regularly.
• Consider enlisting a trusted family member or reputable bill-paying service. Contact your local Area Agency on Aging for help with routine payments.
• Execute a power of attorney only if you have someone you trust completely, and only after consulting with an attorney. Be sure to ask about gifting clauses, and limit the power you give your selected person. Only grant authority that is necessary.
  

DFR's consumer advocates are always there to help with questions or to file a complaint. You can reach them at 1-888-877-4894 (toll-free) or email [email protected] for insurance help and [email protected] for financial services help.

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About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon's largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.