Insurance Scams Target Fundraisers
Written by Andrew-Rossi on April 19, 2018
The Wyoming Department of Insurance is warning consumers to be aware of recent scams that have been targeting fundraising efforts.
Insurance Commissioner Tom Glause says with the coming of summer, which is the season for many fundraising events such as golfing or fishing tournaments, clubs and organizations should be aware of some recent fraudulent schemes that have been perpetrated against fundraising efforts.
Frequently, when a business or organization intends to host a fundraiser with cash or other prizes to be awarded in a contest, they will seek insurance coverage for the cash or prize for the potential winner.
Glause says that while there are credible insurers for these fundraising projects, organizations should be cautious and verify the backers’ legitimacy. He says that while all seems to go well with “bad apple” companies so long as there is no winner, when there is a winner, the supposed prize money ‘insurer’ stops returning phone calls and sponsors are left with a very unhappy prize winner and a prize award they cannot pay.
Glause said Wyomingites should ask questions and be certain that the companies insuring these fundraising programs are legitimate.