Scam alert! Beware of ghost brokers selling fake insurance

September 11, 2024 (TORONTO, ON) – Leading home and auto insurance company Aviva Canada is cautioning Canadians to beware of a ghost broker known as AllcoveredbyAviva or Allcoveredbrokers advertising on social media sites such as Facebook, claiming to be affiliated with Aviva and selling fake insurance. 

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

“It’s important that Canadians stay vigilant to protect themselves from fraudsters. Aviva has resources and tips available on its fraud hub to help Canadians spot insurance fraud. If you suspect you have become a victim of a ghost broker, please make a report via the fraud hub,” adds Lee. 

Ghost brokers are individuals who disguise themselves as insurance brokers and wrongfully interact with the public under the false pretext of selling insurance. They blatantly defraud the public, by letting on they are selling insurance when, in fact, they don’t represent an insurance company. As a result, those who paid ghost brokers for these fake insurance policies are not covered or insured at all. 

Some red flags consumers should look out for when it comes to insurance fraud: 

• Deals that are too good to be true
• No physical office or suspicious online presence
• Unable to provide proof of insurance immediately
• Charging a “finder’s fee” 
• Asking for cash only payments

Protect yourself from insurance fraud. Always: 

• Speak with an insurance professional who is properly licensed and qualified to sell insurance
• Only purchase insurance from a brokerage or agent you trust
• Confirm a specific insurance broker’s license status by referring to the licensing body within your province. For example, in Alberta, Albertans can check the Alberta Insurance Council to look up and confirm details of an insurance representative and the agency they represent. 

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