Scams aren’t just an inconvenience anymore—they’re a growing risk for individuals and businesses alike. From fake emails and text messages to sophisticated cyberattacks that target businesses, scammers are constantly finding new ways to steal money and sensitive information. Knowing how to spot a scam is the first step. Having the right protection in place is the next.
At Risman Insurance Agencies, we help our clients understand today’s risks and explore insurance solutions—like cyber liability insurance—that can help respond when prevention isn’t enough.
Common Types of Scams to Watch For
1. Phishing Emails and Texts
Phishing scams often appear to come from a trusted source—your bank, a delivery company, or even a coworker. These messages may:
- Ask you to “verify” account information
- Create urgency (“Your account will be locked today”)
- Include suspicious links or attachments
Tip: Don’t click links or download attachments unless you’re sure of the sender. When in doubt, go directly to the company’s official website or call them using a known phone number.
2. Fake Check Scams (Unexpected Checks in the Mail)
One increasingly common scam starts with an unexpected check arriving in the mail. These checks often look official and may even include the logo of a well-known company or insurer.
A current real-world example: Quincy Mutual Fire Insurance Company has reported fraudulent checks using its logo as part of a nationwide sweepstakes scam. These checks are not legitimate, even though they may appear authentic.
Scammers may claim the check is:
- A sweepstakes or lottery winning
- A refund or overpayment
- Payment that requires you to send part of the money back
You’re asked to deposit the check and quickly send funds via wire transfer, gift cards, or electronic payment. The check may initially clear your bank—but later be identified as fraudulent. When that happens, the deposited amount is reversed and the victim is responsible for any money already sent.
Tip: If you receive an unexpected check—especially one tied to a prize or sweepstakes—do not cash it. Contact the company directly using a verified phone number and report the incident to local authorities.
3. Fake Invoices and Payment Requests
Businesses are increasingly targeted with fake invoices or wire transfer requests that look legitimate. A single convincing email can lead to thousands of dollars sent to the wrong place.
Tip: Establish internal verification procedures for payment changes or wire requests—especially when they arrive unexpectedly.
3. Impersonation Scams
Scammers may pose as:
- Government agencies
- Utility companies
- Company executives or vendors
They often pressure victims to act quickly or secretly.
Tip: Legitimate organizations rarely demand immediate payment or sensitive information over email, text, or phone.
4. Social Media and Online Marketplace Scams
Fake profiles, fraudulent listings, and “too good to be true” offers are common on social platforms and online marketplaces.
Tip: Be cautious about sharing personal information publicly and verify sellers or buyers before sending money.
How to Reduce Your Risk of Being Scammed
While no one can eliminate risk entirely, these steps can significantly reduce your exposure:
- Use strong, unique passwords and enable multi-factor authentication
- Keep software and systems up to date
- Train employees to recognize suspicious emails and requests
- Back up important data regularly
Prevention is critical—but it’s only part of the picture.
Where Cyber Liability Insurance Fits In
When most people hear “cyber insurance,” they think of businesses—but individuals and families can often access cyber coverage too, usually as an endorsement added to a homeowners or renters policy.
Individual (Personal) Cyber Insurance Policies
Personal cyber insurance is designed to help individuals respond to certain cyber-related incidents tied to personal devices, online accounts, and personal information. While coverage varies by company and policy, many personal cyber endorsements are intended to help with events such as:
- Online fraud and scams, including certain situations where money is taken through deception (such as fake check scams or account takeovers)
- Identity theft, including assistance and restoration services
- Cyber extortion, such as ransomware affecting personal computers or connected home devices
- Data breaches involving personal information, including notification and monitoring services when required
- System or data restoration, such as help recovering corrupted data or restoring infected devices
Personal cyber coverage is typically:
- Subject to annual aggregate limits and deductibles
- Limited to personal, non-business activities
- Focused on direct financial loss and recovery services, not business income or liability to others
It’s also common for these policies to require prompt reporting, police reports for fraud losses, and the use of approved vendors for certain services.
Important Limitations to Understand
Personal cyber insurance does not cover everything. Depending on the policy, exclusions may apply to:
- Losses related to business or professional activities
- Investment losses or scams promising future profits
- Voluntary transfers made under certain types of pressure or coercion
- Losses reimbursed by banks or other third parties
Because of these details, it’s important not to assume coverage applies automatically.
Business vs. Personal Cyber Coverage
- Personal cyber insurance is intended for individuals and households
- Commercial cyber liability insurance is designed for businesses and addresses business data, customers, vendors, and regulatory obligations
A personal policy does not replace business cyber insurance—and business cyber insurance generally won’t cover personal losses.
At Risman Insurance Agencies, we help clients review both personal and commercial cyber options to understand what may be appropriate for their situation.
Final Thoughts
Scammers are getting more sophisticated—but awareness, preparation, and the right insurance strategy can make a real difference. Learning how to spot a scam helps reduce the risk. Having cyber liability coverage may help soften the financial impact if the unexpected happens.
If you’re unsure whether your current insurance program addresses cyber risks, our team can help review your options.
Concerned about scams or cyber risks? Contact Risman Insurance Agencies to discuss cyber liability insurance and learn how we can help you better prepare for today’s digital threats.
Insurance coverage cannot be added, deleted or changed until confirmed in writing from our office.
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