Getting ghosted: Aviva warns of scam brokers selling fake insurance

Aviva Canada is warning consumers to beware of an Alberta-based ghost broker that’s claiming to be affiliated with Aviva, but is instead selling fake insurance policies. 

“It has come to our attention that Canadians are being scammed by representatives of a company known as AllcoveredbyAviva or Allcoveredbrokers, operating out of Alberta,” says Jamie Lee, head of financial crime and fraud at Aviva Canada.  

“Canadians are being led to believe they have purchased auto insurance coverage with Aviva,” Lee says. “Some were issued fake pink slips for auto insurance after being asked to transfer money for insurance premiums whereas others never heard back.” 

Aviva warns the ghost broker has been advertising its scam on social media sites such as Facebook. Since Aviva issued the warning, the Facebook page for ‘Allcoveredbrokers’ appears to have been deleted or locked.  

Ghost brokers are fraudsters who collect premiums and steal personal information from their victims, who are then misled to believe they’re getting insurance coverage for their risks. 

But once an event occurs, the ghost broker disappears. “As a result, those who paid ghost brokers for these fake insurance policies are not covered or insured at all,” Aviva says.  

“Not only can this type of fraud leave you uninsured and out hundreds, possibly thousands of dollars, but it could leave you legally vulnerable,” an Aviva blog post from 2022 reads. 

For example, all vehicles on the road in Canada must be insured, or else drivers could face legal action. Falling victim to an insurance scam could leave consumers vulnerable.  

Aviva warns consumers to look out for warning signs that the broker they’re dealing with may be fraudulent.  

Among them, consumers should be wary of deals that are “too good to be true” — scammers may claim to have lower costs than normal to lure in people who are looking to reduce their insurance expenses. But if the premiums seem too low, the policy might not be real. 

Unusual financial requests, such as charging a “finder’s fee,” or asking for cash-only payments might also tip off consumers that they’re dealing with a fraudster.  

Other red flags include:  

• No physical office or a suspicious online presence  

• Unable to provide proof of insurance immediately 

Part of the onus remains with consumers to ensure the individual they’re speaking to is properly licensed before buying a policy. 

In Alberta, for example, consumers can check the Alberta Insurance Council’s website to confirm if the representative or agency they’re using is licensed. Consumers can also ask the broker or agent for their licence number and cross-reference it online.  

 

Feature image by iStock.com/mathisworks