Mounties in Alberta are sounding the alarm over a growing insurance fraud scheme after a recent crash in the central part of the province revealed one driver was unknowingly uninsured.
RCMP say the individual was involved in a collision in Ponoka and presented a pink insurance card listing “All Covered Canada” as their provider.
Investigators quickly discovered the company did not exist, leaving the driver without legitimate coverage. Officials say the case is part of a wider scam involving so-called “ghost brokers.”
These fraudsters pose as legitimate insurance agents, selling fake policies to unsuspecting customers. Victims often only discover the deception when they attempt to make a claim or are asked to provide proof of insurance.
RCMP are urging Albertans to be vigilant and watch for red flags, including:
- Insurance deals that seem too good to be true
- No physical office or a suspicious online presence
- Delays or refusal to provide proof of insurance
- Requests for a “finder’s fee”
- Cash-only payment demands
Police recommend residents only consult licensed and qualified insurance professionals, purchase coverage through trusted brokerages or agents, and verify a broker’s licence with the provincial regulator.
In Alberta, residents can confirm credentials through the Alberta Insurance Council.
Anyone who suspects ghost brokers have targeted them, or who has information about such scams, is asked to contact their local police. Those wishing to remain anonymous can contact Crime Stoppers.