FBI warns: Don't be fooled, thousands have lost millions of dollars to this medical scam

The FBI has issued an urgent warning to Americans about a surging scam involving discounted medical insurance. The agency highlighted the “emerging” scheme, which has already defrauded hundreds of people across the country, costing victims thousands of dollars. These scams prey on individuals seeking affordable healthcare options by offering misleading or outright fraudulent insurance plans that leave consumers vulnerable to massive out-of-pocket expenses.

The New York Post reports that the FBI described how these scams typically unfold: victims are contacted out of the blue by unknown businesses posing as legitimate medical insurance providers. These fraudsters employ deceptive tactics, such as offering time-sensitive discounts, promising free services with hidden fees, or pressuring individuals to sign up immediately. “If the plan seems too good to be true, it probably is,” the FBI stated in its warning.

Victims of these scams have faced devastating financial consequences. In one case, a Maryland man was lured by a promise of saving thousands by paying for a year-long health insurance policy upfront. He was assured the plan included his current medical providers with low co-pays—$20 for doctor visits and $50 for urgent care. But after undergoing emergency surgery, he discovered the plan was fraudulent, leaving him with a staggering $7,000 medical bill.

Similarly, in Washington state, a company operating under multiple aliases misrepresented its medical plans, leading to over 100 complaints from victims stuck with thousands in uncovered medical costs. The state issued a cease-and-desist order against the company, but not before significant damage was done, according to the FBI. The FBI is urging anyone who suspects they’ve been scammed to file a report with the Internet Crimes Complaint Center (IC3) and provide as much detail as possible to aid investigations.

To help consumers avoid falling victim, the agency offered simple tips:
* Contact your state’s insurance commissioner or the Better Business Bureau to confirm the company’s credentials.

* Verify with your current medical providers that they accept the proposed insurance plan.

* Carefully review policy documents and read the fine print to fully understand the terms.

* Avoid agreeing to or paying for any plan upfront without thorough verification.

The rise of these scams comes at a time when healthcare costs continue to be a major concern for Americans. According to a 2024 Kaiser Family Foundation survey, 41% of U.S. adults reported struggling to afford healthcare, making discounted insurance offers particularly enticing to scammers’ targets. The FBI’s warning underscores the need for vigilance as fraudsters exploit this vulnerability.