Canada is making strides in the war against auto theft and organized crime in the wake of a national summit.
That’s according to Gavin Mascarenhas (pictured), vice president, claims, at Travelers Canada.
“Since we had the summit, it's been very energizing to see the dialogue continue,” said Mascarenhas, who is also a member of Equite Association, the independent organization dedicated to tackling insurance fraud.
“I think we’re progressing more than we did before the summit,” he said. “The IBC (Insurance Bureau of Canada) and insurers within that group are still very involved in that dialogue.
“But this isn’t a problem that the insurance industry alone solves. It’s a collective issue, and manufacturers, Canadian border security agencies, and insurers all have a part to play.”
Discussions at February’s national summit were focused on solutions to the mounting challenge posed by auto theft.
Among the actions pledged was to boost the capacity of Canada’s border services and to establish better information-sharing between local police and railway police to identify and locate stolen vehicles before they arrive in ports.
Other initiatives include Transport Canada’s plan to modernize Canadian Motor Vehicle Safety Standards to ensure technological advancements are considered in auto theft prevention.
In the wake of the summit, Canada’s minister of Public Safety, Dominic LeBlanc, said that ongoing collaboration among stakeholders, including the insurance industry, “will be key to the success of our efforts.”
The surge in auto theft incidents in the past two years has drawn concern among insurers, who paid over $1.2 billion in claims for stolen vehicles in 2022, according to Equite Association.
Mascarenhas highlighted Travelers Canada’s efforts to work with law enforcement agencies in their investigations.
“As insurance providers, we have a part to play with information sharing. The data we share with law enforcement agencies and border protection services will be impactful all the way through,” he said.
Mascarenhas also spoke to Insurance Business about the wider claims fraud landscape and the growing influence of artificial intelligence (AI) and other technologies in criminal schemes.
“Criminals who commit fraud are increasingly sophisticated in using technology. While technology has advanced dramatically in ways that can help us in our professional and personal lives, criminals have used it to their advantage,” the claims leader said.
“They are using digital and AI technology to manipulate data and find other creative ways to beat the system.”
He cited an example in auto theft claims, where thieves gain access to newer vehicle models that use a keyless ignition system by using a relay service that locates the signal of the key fob, even if it's inside the claimant's residence.
“That's how creative and clever they've gotten in gaining access,” Mascarenhas said.
But beyond technology, Mascarenhas is concerned about the “collaborative approach” that fraud and auto theft groups are leveraging.
“In the past, we'd see individuals or small groups of people working alone, but now they tend to partner up. It’s becoming increasingly alarming how they're infiltrating domestic institutions and working with organized crime rings,” he said.
“Organized criminals are leveraging the Canadian market to service international markets by shipping cars overseas or even replacing those VINs to resell stolen vehicles domestically.”
While there is some way to go to combat auto theft and claims fraud, Mascarenhas said education and awareness are vital steps the public can take.
“Individuals and businesses alike should remain diligent and stay informed on the latest fraud trends. There are many educational resources available,” Mascarenhas said. “Victims often don't know they’re victims until the crime has occurred.”
What are your thoughts on the ongoing battle against auto theft and claims fraud? Please share them in the comments.
