The Financial Services Commission of Ontario (FSCO) is warning consumers about a new auto insurance scam.
FSCO said Wednesday that an individual claiming to sell auto insurance on behalf of insurance brokerage DMW Insurance Ltd. is contacting victims via Blackberry Messenger and providing them with a phone number and/or email address to call for cheap insurance. Victims are then directed to pay their premiums via an email money transfer.
The regulator notes that DMW Insurance is a legitimate brokerage registered by the Registered Insurance Brokers of Ontario (RIBO), but it is not affiliated or associated with the individual soliciting via Blackberry. It also reminds consumers not to pay their auto insurance premium in cash, or via a wire, or email, money transfer, adding, “these are not common practices in the insurance industry.”
If consumers purchase insurance from unlicensed agents they are not protected under the Insurance Act, or the regulations that govern Ontario’s licensed insurance companies and agents, it notes.