Blog

At HUB Customer Central, we believe informed Canadians are protected Canadians. Unfortunately, many are being targeted by “ghost brokers”, con artists who sell fake and invalid insurance policies.

These scammers often prey on newcomers or those unfamiliar with the insurance process, luring them with rock-bottom rates and professional-looking paperwork. The result? Victims are left without valid coverage, facing serious financial and legal trouble.

What Ghost Brokers Do

• Sell fake insurance – They create phoney policies that look official but offer no real coverage.
• Impersonate legitimate brokers – Using stolen identities, fake names, or fraudulent websites, they pretend to be licensed professionals.
• Manipulate policy details – Altering genuine policies or falsifying information to obtain cheaper premiums that invalidate coverage.
• Target vulnerable individuals – Often newcomers to Canada, people with limited English skills, or those unfamiliar with local insurance requirements.
• Operate online or over the phone – Advertising through social media, online marketplaces, or cold calls, which makes it difficult to verify their legitimacy.
• Request e-transfer or electronic payments – These payments are often made to an individual, are untraceable and cannot be reversed.

Why Ghost Brokers are Dangerous

• No coverage when it matters – You may believe you’re insured, only to discover you have no protection after an accident or claim.
• Financial loss – Victims lose the money they paid and may face significant out-of-pocket costs in the event of an insurance claim.
• Legal trouble – Driving without valid insurance can lead to fines, licence suspension, and other penalties.

How to Protect Yourself

1. Verify the broker’s licence – In Ontario, confirm with the Registered Insurance Brokers of Ontario (RIBO).
2. Be cautious of unusually low quotes – If it’s much cheaper than other quotes, it’s likely a scam.
3. Avoid untraceable payments – Never pay in cash or via e-transfer; use secure, traceable payment methods. Check credentials carefully:
   • Call the brokerage directly to verify their employment.
   • Make sure the company is licensed. You can check a website’s domain and registrar to confirm it’s Canadian and appears legitimate.
   • Licensed brokers use professional email addresses linked to their official company website, usually ending in .ca.
   • Review their LinkedIn profile for authenticity: look for a newly created account, stock photos, questionable education, lack of, or suspicious details.
   • Search their name and contact details online.

4. Report suspicious activity: Contact RIBO or your local police if you suspect fraud.

Your insurance policies should give you confidence, not concern. Before you buy, verify your broker and your policy.