Some brokerage names are being “stolen” and placed on bogus automobile pink slips, says the Registered Insurance Brokers of Ontario (RIBO). In its winter bulletin, the regulator says there has been an increase in the number of pink slip frauds reported by RIBO member brokers.
The fraud first comes to light when the “insured” takes a fake pink slip into the broker’s office and requests a copy of the policy that they have yet to receive.
RIBO says that typically the insured never purchased any insurance through that brokerage office, but did actually meet someone at another location. The “insured” typically is referred to the new location by a friend but will not divulge the name of the referrer. Also, RIBO says in most cases the insurance was purchased through a website or over the phone and the “premium” was sent via Western Union. The “insured” then received the bogus pink slip by mail or email.
“Brokers should retain a copy of the bogus pink slip and be diligent in reporting such activity to the insurer named on the pink slip, as well as to RIBO and the police,” the bulletin states.
RIBO suggests that brokers may consider sending a registered letter to the “victim” to confirm that no valid insurance is in place.
“Victims should be encouraged to report the matter to the police in the jurisdiction where the original transaction took place,” RIBO adds.