Toronto man arrested for selling fake auto insurance to unwitting consumers
Published: March 6, 2019
Updated: April 1, 2019
Author: Luke Jones
CATEGORY: Car Insurance
Insurance fraud is known as a major problem across Ontario. For the most part, fraud is typically associated with customers who falsify claims or crime rings that run large-scale insurance fraud operations. However, sometimes fraud works the other way with criminals attempting to target unwitting customers.
That’s what is alleged to have happened in Toronto, where Ontario Provincial Police have arrested a man for selling fake auto insurance. Now, the provincial police force is issuing a warning to other would be insurance tricksters.
OPP says it arrested 38-year-old Sherif Aly last month on charge of two counts of insurance fraud under $5,000 and false documentation. Police believe Aly has been selling fake auto insurance in the Toronto area using a fake company called Reef Car Insurance.
Aly is not licensed to sell coverage in Ontario, so any policies “written” by him are not valid. OPP says he did have customers and some of his victims are unaware that the auto insurance is fake. Officials are asking customers to check their policies and contact authorities if there are any concerns.
Aly is scheduled to appear in a Toronto courtroom later in March.
Ontario’s auto insurance market is beset by fraud, which costs the industry around $2 billion each year. Much of that loss is put back on customers in the form of increased premiums.
Customers are advised to take relevant check to ensure the company/person they purchase auto insurance from is legitimate. Insurance sellers, whether individual or within an organization must be licensed by the Financial Services Commission of Ontario (FSCO). Any seller without a license should be reported and consumers should avoid purchasing any coverage from them.