TOKYO (TR) – Sony Life Insurance announced that two former sales representatives swindled customers out of cash by convincing them to cancel their insurance policies to fund a fake investment scheme, reports TV Asahi (Aug. 4).
According to the company, the ex-employees lured clients with promises of exclusive access to unlisted stocks. The rogue reps allegedly instructed the victims to cancel their existing life insurance policies to free up cash, and then pocketed the refunded premiums.
The newly uncovered fraud involves two cases totaling 1.5 million yen. However, the company warns the financial damage is likely to grow as the investigation continues.
The revelation follows on the heels of a separate, massive scandal at the insurer. Sony Life previously disclosed that four other sales representatives engaged in shady financial transactions totaling roughly 120 million yen with 14 customers, also using bogus investment pitches.
This latest incident marks the first time fraud directly linked to the core insurance operations — specifically the cancellation of policies — has been uncovered at the firm.
Fearing the scam could be much larger, Sony Life has launched an unprecedented internal probe, reaching out to confirm the safety of accounts for all 2.8 million of its policyholders.
The company stated it went public with the information to alert customers of the ongoing threat, and expects to announce an update on the massive investigation next month.
