After police arrested and charged a man in connection with selling fake insurance online, one insurer is urging the industry to step up and inform their clients that if it seems too good to be true, it probably is.
“With the anonymity and ease of classified websites, we have seen a sharp increase in the amount of fake motor vehicle liability insurance cards, also known as pink slips, being sold online,” said James Russell, chief underwriting officer for Aviva Canada. “Consumers need to be aware that some individuals have made a business out of defrauding others and use this type of scam as a regular source of income.”
Toronto Police Service officers travelled to Edmonton, Alta. on September 10 to arrest Serafattin (George) Solak on several counts of fraud and eight provincial charges of Sell, Give, Distribute Insurance.
The arrest was made possible through the cooperation of Aviva Canada, which provided evidence of the fraudulent activity. It is alleged that Solak advertised insurance for sale on various online classified websites including Kijiji and Craigslist, and allegedly met with victims in person to accept cash or cheques whiel providing false motor vehicle liability insurance cards.
During the arrest, police officers seized fraudulent Aviva Canada motor vehicle insurance liability cards.
“We want to emphasize that the charges against Mr. Solak are just one instance. Other would-be criminals are trying this over and over again,” says Russell. “What people are buying from these individuals is not insurance – it's just a piece of paper that comes with a big risk. Any driver using a fake insurance slip instead of securing valid coverage could potentially be sued for millions of dollars.”
The Financial Services Commission of Ontario has also issued a warning about Solak and his connection to a fake insurance scam.
