RIBO cites increasing number of fraudulent pink slips

Ontario’s broker regulator, the Registered Insurance Brokers of Ontario (RIBO), is reporting an increasing number of fraudulent pink slips.
RIBO says brokerage names are being ‘stolen’ and used on bogus auto insurance slips.
In its winter bulletin, RIBO said the frauds have come to light when purported ‘insureds’ go to a broker’s office with a bogus slip, requesting a copy of the policy that they have yet to receive.
Further investigation typically reveals that:
•the ‘insured’ never purchased any insurance through the brokerage office, but actually met a fraudster at another location;
•the insurance was purchased through a website and/or telephone;
•the ‘premium’ was sent by Western Union; and
•the purported ‘insured’ received the bogus pink slip by mail or email.
RIBO advises that brokers should retain a copy of the bogus pink slip and be diligent in reporting such activity to the insurer named on the pink slip, as well as to RIBO and the police. If the bogus insurance was arranged by telephone, the broker should also contact Phonebusters, the bulletin added.
“Brokers should also consider sending a letter by registered mail to the ‘victim’ confirming that there is no valid insurance in place. Victims should be encouraged to report the matter to the police in the jurisdiction where the original transaction took place,” it continued.