The Canadian Anti-fraud Centre and the Ontario Provincial Police (OPP) are warning people who are seeking and obtaining automobile insurance, that fraudsters have been advertising fraudulent insurance premiums in Ontario newspapers and on websites.

Complaints forwarded by victims of this automobile insurance scam confirm that the scammers have used company names such as “Arthur and Son”, “Smith and Sons” and “Addison and Sons”.

A scam of this nature is serious in that victims are not aware that their automobile insurance is not valid until they are involved in a collision or are stopped by police, the Anti-fraud Centre says.

Signs consumers need to be aware of are: unusually low rates; everyone is accepted; and a phoney, invalid insurance slip is mailed or emailed to buyers after they have sent their premium through Western Union or Money Gram.

The Anti-fraud Centre is advising citizens to protect themselves by following a few safety measures when shopping for automobile insurance.

It notes that legitimate insurance companies and brokers have to be registered in Ontario.

Ontario insurance brokers have to be licensed with the Registered Insurance Brokers of Ontario (RIBO), which can contacted by by visiting www.ribo.com.

Automobile insurance is regulated by the Financial Services Commission of Ontario. Insurance companies must be registered with FSCO, which can be contacted at www.fsco.gov.on.ca.

Consumers who suspect they have or are about to purchase fraudulent insurance, can contact their local police service and the Canadian Anti-fraud Centre at 1-888-495-8501.