Ghost Brokers Alberta
Consumers in Alberta are being cautioned about unlicensed insurance agents, also known as “ghost brokers,” while purchasing car insurance.
According to Chris Merriman, Alberta’s superintendent of insurance, there has been a rise in reports of ghost brokers falsely claiming to offer car insurance.
Two types of schemes
The notice warned about “ghost brokers,” who are unlicensed agents that fraudulently claim to assist car owners in finding cheaper auto insurance, often through social media or phone calls.
The ghost broker agents engage in deception by either posing as customers and providing false information to insurance companies or by distributing counterfeit policies and pink cards.
Ghost brokers often prey on newcomers to Canada and individuals unfamiliar with the province’s car insurance system, as stated in the notice.
According to Merriman, victims often discover their lack of legitimate insurance only after experiencing a loss, which can leave them without coverage and in a vulnerable position.
Ghost Broker Investigations
They owned their cars for years. Police are now indicating the vehicles are stolen property.
In Alberta, the superintendent regulates the insurance business industry and isn’t the only individual sounding the fraudulent agents bells.
Aviva Canada issued a news release on Sept. 11, warning Canadians about a ghost broker called AllcoveredbyAviva or Allcoveredbrokers in Alberta.
In the release, Jamie Lee, the company’s head of financial crime and fraud, stated that Canadians were deceived into transferring money for insurance premiums and were falsely led to believe they had purchased auto insurance coverage with Aviva. She stated, “Individuals have been given fake pink slips.”
According to the news release, the ghost broker promoted themselves on social media platforms and falsely claimed to be associated with Aviva.
Alberta Insurance Council
Karim Mouait, president of Cornerstone Insurance Brokers and president-elect of the Alberta insurance brokers association, felt a chill creep up his spine as he listened to the whispered accounts of people falling victim to auto insurance counterfeit pink cards.
According to him, inflation has placed significant financial strain on households, prompting people to seek ways to save money on car insurance.
He stated, “This is an ideal excuse for fraudsters to exploit individuals in the auto insurance industry”
Andy Dykstra, associate VP of enterprise fraud at Co-operators, emphasized the recent rise of the auto insurance problem, which is not exclusive to Alberta.
“Keeping track of their actions is challenging, as a ghost broker excels in innovation and constantly seeks vulnerabilities,” he stated.
According to him, insurance companies can detect and prevent it, but they are not foolproof.
Consumers should be aware of these ghost broker red flags.
Superintendent of Insurance
According to the superintendent of insurance notice, consumers can safeguard themselves against a ghost broker by researching licensed agents and insurance companies next time they seek automobile insurance.
According to Mouait and Dykstra, consumers should be wary of upfront fees, cash payment requests, extremely low rates, and cheaper insurance incentives.
According to Dykstra, if the automobile insurance deal appears too good to be true, it’s a cause for concern.