PA Attorney General Warns of Fake Health Insurance Marketplaces Amid Open Enrollment

Protecting Consumers from Fake Health Insurance Marketplaces This Open Enrollment Season

As open enrollment begins, a growing wave of fraudulent health insurance marketplaces is putting consumers and insurers alike at risk. These deceptive sites look strikingly similar to legitimate marketplaces, complete with official logos, sleek designs, and promises of “instant coverage.” But behind the façade lies a dangerous reality — identity theft, payment fraud, and a significant erosion of consumer trust.

The Rise of Imitation Marketplaces

Every year, thousands of Americans go online to shop for health insurance plans during open enrollment. Unfortunately, scammers are taking advantage of this predictable surge in traffic by creating fake websites designed to harvest personal data such as Social Security numbers, bank account information, and health details. Many victims only discover the scam after payments vanish or their identities are compromised.

“These fraudulent marketplaces aren’t just stealing money — they’re eroding public confidence in the insurance system,”
– Cybersecurity Analyst, National Association of Insurance Commissioners

How Scammers Operate

The tactics are increasingly sophisticated. Fake domains often use slight spelling variations of legitimate sites, purchase paid ads to rank higher in search results, and even employ real customer service agents to lend an air of credibility. Some also target insurance agents and brokers directly through phishing campaigns.

Red Flags for Consumers and Brokers

Here are a few telltale signs that a marketplace might not be what it seems:

• Requests for payment before confirming coverage

• Poor grammar or spelling on official-looking pages

• Unsecured website addresses (no HTTPS)

• Unusually aggressive sales tactics

• Lack of verified contact information or licensing credentials

“If something feels off, it probably is. Agents and consumers alike need to double-check the legitimacy of any marketplace before entering personal data.”
– Senior Compliance Officer, Midwest Health Alliance

The Industry’s Role in Consumer Protection

Insurance professionals have a unique opportunity — and responsibility — to step up consumer education during open enrollment. By proactively informing clients about how to identify legitimate marketplaces and secure their personal information, agents can not only prevent fraud but also strengthen long-term trust.

Regulators are also urging carriers and brokers to tighten data protection measures and stay alert for phishing or domain spoofing incidents. Collaborative reporting between insurers and state departments can help shut down scam sites faster.

Looking Ahead

Open enrollment is the busiest time of year for both insurers and fraudsters. As fake marketplaces become harder to spot, industry vigilance and consumer education are the best defenses. Every agent, broker, and insurer plays a role in ensuring that Americans can shop for coverage with confidence — and without fear of fraud.

“Trust is the foundation of our industry. Protecting that trust means staying one step ahead of bad actors.”
– Health Insurance Executive, East Coast Mutual