The United States isn’t the only place where insurance scams occur. This week, the Canadian Anti-fraud Centre (formerly Phonebusters) and the Ontario Provincial Police (OPP) are warning those who are shopping for car insurance to be wary of fake companies advertising fraudulent rates in local newspapers and on the Internet. b
Specifically, insurance shoppers are advised to be aware of:
- Rates that seem unusually low
- Across-the-board acceptance
- Payment requested via Money Gram or Western Union after which receipt, a fake, invalid insurance slip is mailed or emailed to the consumer
Victims of such scams have listed the names “Arthur and Son,” “Smith and Sons,” and “Addison and Sons” as those used by the fraudulent insurers.
Consumer awareness groups say this sort of scam is incredibly dangerous, not just because a thief has obtained customers’ personal information, but also because the victim may not be aware their insurance is fake until they are in an accident or stopped by the police.
The Canadian Anti-Fraud Centre is advising citizens to protect themselves by practicing basic safety measures when shopping for automobile insurance.
Legitimate insurers and brokers must be registered in Ontario, and consumers can verify this via two sources:
- All Ontario Insurance brokers have to be licensed with the Registered Insurance Brokers of Ontario (RIBO). You can contact RIBO at
416-365-3098 and 1-800-265-3097 or by visiting www.ribo.com - In Ontario, automobile insurance is regulated by the Financial Services Commission of Ontario (FSCO), an agency of the Ontario Ministry of Finance. In order to provide insurance, an insurance
company must be registered with FSCO. You can contact FSCO at www.fsco.gov.on.ca
Of course, if you suspect you have (or are about to) purchase fraudulent insurance, please contact your local police service and the Canadian Anti-fraud Centre at 1-888-495-8501.
You may also visit www.phonebusters.com to educate yourself against fraud and scams currently affecting Canadians.