Rising cost-of-living pressure is giving fraudsters more room to exploit consumers shopping for cheaper insurance, according to Peel Regional Police, which is urging buyers to verify a broker's licence before paying for coverage.
"The cost of living and current economic pressures have resulted in many people looking for opportunities to reduce their expenses," police said in a statement to Insurance Business. "Unfortunately, fraudsters can exploit that vulnerability by offering services, products or savings that appear legitimate or attractive."
Police said what's driving this type of fraud can't be attributed to any single factor, and declined to speak to the specific circumstances or motivations behind any individual case. Asked whether they'd observed a broader trend of fraud involving individuals who previously held an insurance licence, police were direct: they hadn't.
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"Peel Regional Police has not observed any specific trends or increases in fraud investigations involving individuals who previously held a licence to sell insurance," police said. The force added it isn't aware of other former brokers or agents allegedly committing this specific type of fraud at this time, though it noted parallel investigations may be underway in other jurisdictions.
The comments follow a case in which Peel police charged a Mississauga man, Muhammad Raahim, in August with defrauding the public. Investigators allege Raahim sold fraudulent automobile insurance policies between April 2024 and August 2026, continuing to do so after losing his licence to sell insurance. Police identified 15 incidents connected to the scheme, with reported victim losses exceeding $10,000, and said they believe there may be additional victims.
Raahim was previously employed by several insurance brokerages, according to police, who allege victims were provided with documentation that appeared legitimate, leading them to believe they had valid coverage. He was released with conditions and is awaiting a future court appearance.
Oversight of licensed brokers and agents falls to regulators rather than police directly, according to the force. The Financial Services Regulatory Authority of Ontario (FSRA) and the Registered Insurance Brokers of Ontario (RIBO) each maintain their own regulatory systems, and Peel police said it works closely with both bodies, along with the Canadian Anti-Fraud Centre (CAFC), to identify, suppress, and prevent fraud, and to support victims.
That coordination reflects a broader pattern where enforcement, licensing oversight, and fraud reporting sit with different bodies entirely, meaning a consumer who suspects they've been misled by an unlicensed or lapsed agent may need to engage more than one of these organizations depending on what happened.
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Police reiterated the same advice they gave at the time of Raahim's arrest: verify that a broker or agent holds an active licence before making a payment or handing over personal information, and confirm coverage details directly with the insurance company when in doubt.
RIBO maintains a public Broker Search and Brokerage Search tool, updated daily, that lets consumers confirm whether an individual or firm currently holds a valid licence to sell insurance in Ontario before handing over payment or personal information. The registry shows current licensing status but not full licensing history, so a name that doesn't appear, or that shows as inactive, is reason enough to pause and ask questions before proceeding.
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RIBO explicitly frames the tool as a defence against "ghost brokers," unlicensed individuals posing as legitimate agents, a category the Raahim case falls squarely into given his licence had lapsed before the alleged fraud continued.
The Canadian Anti-Fraud Centre, which Peel police said it works with directly on cases like this one, also collects reports from consumers who believe they've been targeted, even when they're unsure whether a crime has technically occurred. Filing a report there, police said, helps investigators identify patterns across cases that might not otherwise be connected.
