Ontario Provincial Police warn public about auto insurance scam

The Canadian Anti-fraud Centre (formerly Phonebusters) and the Ontario Provincial Police are warning potential auto insurance consumers in Ontario of a fraud ring, in which fraudsters are advertising fraudulent insurance premiums in Ontario newspapers and on Web sites.
The scam advertises unusually low rates for auto insurance, and everyone is accepted at the rates offered. A phoney, invalid insurance slip is mailed or emailed to buyers after they have followed instructions to send their premium money through Western Union or Money Gram.
“Complaints forwarded by victims of this automobile insurance scam confirm that the scammers have used company names such as ‘Arthur and Son,’ ‘Smith and Sons,’ and ‘Addison and Sons,'” the OPP said in a press release. “A scam of this nature is serious in that victims are not aware that their automobile insurance is not valid until they are involved in a collision or are stopped by police.”
The police note the public can contact regulators such as the Financial Services Commission of Ontario (FSCO) and Registered Insurance Brokers of Ontario (RIBO) to check to see if their insurers and/or brokers are licensed to operate in Ontario.
Anyone who suspects they have already purchased, or are about to purchase fraudulent insurance is encouraged to contact local police or call the Canadian Anti-fraud Centre at 1-888-495-8501.