Palos Park police are working with the State Farm Insurance Special Investigations Unit after a resident reported that an insurance policy was fraudulently taken out in their name, followed by a $17,000 claim.
Investigator Michelle Marano said the case involves stolen identity being used for insurance fraud. Criminals used the victim’s personal information to apply for an insurance policy and file a fraudulent claim. Marano noted that Palos Park police have not seen a case of insurance fraud this egregious in recent years.
Authorities are urging residents to take preventive measures by changing passwords on any personal accounts that may have been compromised and notifying relevant financial institutions. If a bank account is suspected to be involved in an insurance scam, the police recommend contacting the bank immediately.
As online transactions and digital communications continue to grow, police warn that identity theft is evolving and becoming more sophisticated. Thieves no longer just steal credit card numbers from discarded receipts—they now use advanced digital tactics to access financial assets and damage credit histories.
Fraudsters use stolen information to open fake bank accounts, obtain unauthorized credit cards and insurance policies, apply for loans, and lease property under false identities. In cases of insurance fraud, criminals may take out policies in victims’ names to facilitate “crash-for-cash” schemes or impersonate policyholders to hijack accounts and file fraudulent claims.
Palos Park police caution that identity thieves only need a few stolen details to carry out various fraud schemes, including insurance, banking, and credit fraud. To minimize risk, they recommend the following:
- Create strong, unique passwords for all personal accounts.
- Avoid sharing personal information publicly on social media.
- Only make purchases through legitimate retailer websites.
- Enable two-factor authentication on personal devices and accounts.
- Be cautious of phishing attempts that encourage clicking on links or opening attachments.
Authorities encourage residents to remain vigilant and report any suspicious activity to law enforcement.
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