Insurance Bureau of Canada alerts motorists to latest auto insurance fraud scheme
A new auto insurance scam is making the rounds, and unsuspecting newspaper readers may be victimized.
According to the Insurance Bureau of Canada (IBC), a scam artist has taken out advertisements in several newspapers claiming to be a legitimate auto insurance provider to lure consumers into buying fraudulent insurance.
The IBC says the people who concocted the scheme don't go to great lengths to hoodwink potential buyers. They simply ask unsuspecting customers for payment via wire transfer and promise to mail them their policy. But the fraudsters are pocketing the money and cheating their victims out of hundreds of dollars.
If policyholders suspect they have been scammed, the IBC recommends people get in touch with the company directly, not the agent that sold the policy.
A significant portion of what Canadians spend in their annual auto insurance premiums is directly attributable to fraud, costing policyholders approximately $542 million annually, according to the IBC. The bureau's website has a variety of tips motorists can follow to avoid becoming a victim of auto insurance fraud.