Featured Story of the Month: Insurance Fraud Investigation in Cyprus.
Insurance broker detained for €720,000 fraud targeting foreign residents
Limassol police have detained a 45-year-old insurance broker suspected of orchestrating a large-scale fraud scheme that defrauded dozens of clients, primarily foreign nationals, through fake insurance policies over six years.
The suspect appeared before Limassol District Court on Monday facing charges of fraud, forgery, circulation of false documents, and money laundering. The court ordered him held for seven days.
The fraud was uncovered in November 2023 when the insurance company’s life insurance director reported serious irregularities to Limassol’s Financial Crime Investigation Unit.
An audit revealed a €719,524 discrepancy between client payments and company records.
Investigators say the broker, who worked with a Cyprus-wide insurance firm from 2017 to 2023, targeted Chinese residents across Limassol, Paphos, Larnaca and Nicosia, offering attractive investment-linked insurance policies with guaranteed returns.
In one case, a Chinese woman reported paying €229,500 for two fraudulent 10-year investment policies.
When she attempted to withdraw €100,000 in October 2023, the suspect allegedly provided her with a forged cheque.
The suspect has denied the charges and refused to cooperate with authorities. Police expect to take about 60 statements from victims, company employees and associates as the investigation continues.
The case involves forged receipts, policy documents, bank statements and company director signatures, according to investigators. Six financial crime officers are investigating the case.
Kaynak: Insurance broker detained for €720,000 fraud targeting foreign residents | in-cyprus.com