The RCMP is sounding the alarm about a ‘ghost broker’ scam following an incident in central Alberta.
Police say during the response to a recent collision in the Ponoka area, it was found that one of the individuals involved was the victim of insurance fraud. The RCMP reports that the victim provided his pink card, which was for the company ‘All Covered Canada’. However, the RCMP says that insurance company did not exist.
Mounties explain that ‘ghost brokers’ are people who disguise themselves as insurance brokers under the false pretext of selling insurance. Police say those who pay ghost brokers for fake insurance policies are not covered or insured at all.
Some red flags everyone should watch for include:
- Deals that are too good to be true;
- The company not having a physical office or a suspicious online presence;
- The company is unable to provide proof of insurance immediately;
- The company or individual charges a ‘finder’s fee’;
- The scammer asks for cash only payments.
The RCMP recommends people 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, residents can check the Alberta Insurance Council to look up and confirm details of an insurance representative and the agency they represent.
Anyone who believes they are a victim of insurance fraud or who has information about ghost brokers is asked to call their local police service. Information can also be provided anonymously to Crime Stoppers online or by calling 1-800-222-8477.
