Alberta RCMP warn of ‘ghost broker’ scam

RCMP (file photo)

RCMP are warning Albertans of a “ghost broker” scam after a person was recently found to be a victim of insurance fraud in Ponoka.

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Following a crash in the area, the victim provided his pink card as required, which indicated he was insured by the company All Covered Canada, only to find that the company did not exist.

Ghost brokers disguise themselves as insurance brokers under the false pretext of selling insurance. As a result, those who pay ghost brokers for the fake policies are not covered or insured.

Some red flags to look for are:

• deals that are too good to be true;
• no physical office or suspicious online presence;
• unable to provide proof of insurance immediately;
• charging a “finder’s fee”; and
• asking for cash only payments.

It is recommended that people always speak with an insurance professional who is properly licensed and qualified, only purchase insurance from a brokerage or agency you trust and to confirm a specific broker’s licence status by referring to the licensing body within your province.

If you believe you are a victim or have information about ghost broker fraud, contact your local police. Anonymous tips can be submitted through Crime Stoppers.