Aviva Canada: New data shows staggering rise in fraud across the country as Fraud Prevention Month kicks off

Auto-related incidents accounted for 67% of all claim fraud investigations during the past year. 

Bad actors are capitalizing on Artificial Intelligence (AI) and technology for their malicious activities and Canadians are urged to keep vigilant. 

March 4, 2025 (TORONTO, ON) – From auto theft to AI-generated documents and beyond, fraud continues to be one of the more pressing issues facing Canadian consumers and businesses in 2025.

As Fraud Prevention Month kicks off, new data from Aviva Canada has revealed a 46% increase in claim fraud detection - and a staggering 76% rise in fraud investigations - in 2024. Auto-related incidents alone accounted for two-thirds (67%) of all claim fraud investigations during the past year. Advancements in AI and its use by individuals to falsify information are expected to be on the rise in 2025.

“People are getting more sophisticated and innovative in their approaches when engaging in potentially fraudulent activity, making it increasingly difficult for the average Canadian to spot,” says Jamie Lee, Head of Financial Crime and Fraud, Aviva Canada. “Insurance fraud costs Canadians $1 billion per year in added premiums. It’s vital for Canadians to stay educated on the rising trends to better protect themselves.”

Five Emerging Fraud Trends to Watch in 2025

The methods used by bad actors are constantly evolving, so it’s important for Canadians to stay current on emerging trends. Aviva Canada’s data shows five types of fraud that are growing in the Canadian market.

• Vehicle Theft and ReVINing - Vehicle thefts remain above pre-pandemic levels, with a 58% increase in investigations in the latter half of 2024. Stolen vehicles are often shipped overseas, or their VIN numbers altered and resold to unsuspecting Canadian buyers with false documentation. With the tightening of Canada-US borders, more stolen vehicles could remain in Canada, increasing the likelihood of Canadians buying a stolen vehicle from online public marketplaces.
• Staged Auto Accidents - Increasing in numbers and complexity, staging false auto accidents is a trend on the rise across Canada. Aviva Canada saw a 47% increase in the number of staged accidents caught in Q4 2024. This type of scam could be linked to organized crime groups operating in Canada.
• AI-Enabled Falsified or Forged Documents - The use of technology AI to edit or falsify documents is increasingly evident in investigations. This technology is frequently seen in both staged claims and opportunistic fraud, where it is used to create false claims or inflate legitimate claims, such as personal and commercial property contents claims, by supporting them with false invoices.
• Ghost Brokers - People posing as licensed insurance brokers to sell fake policies or manipulate information to secure lower premiums is a growing concern in Canada, often leaving unsuspecting consumers without valid coverage. Consumers should be extra vigilant when purchasing insurance. They are encouraged to check their provincial registries to ensure the person they’re dealing with is properly licensed and confirm proof of insurance directly with the insurer.
• Policy Misrepresentation – Individuals may misrepresent or omit key information from their insurance policies such as their true address, the intended use of a vehicle or property, or not disclosing major construction or renovations being done. These incidents can unfortunately lead to honest customers paying disproportionately higher premiums.

“Fraud impacts Canadians not only financially, but also mentally and emotionally,” adds Lee. “Fraud costs everyone and drives up insurance premiums. At Aviva Canada, we are continuing to work with law enforcement and industry stakeholders to better protect Canadians from fraud.”

For tips and more information on how to protect yourself or to report fraud, you can visit Aviva Canada’s Fraud Hub.

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