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Insurance Fraud Awareness Tips

INSURANCE FRAUD | Protect Yourself and Fellow Canadians

The effects and costs of insurance fraud are far-reaching and don’t only hurt insurance companies. One incidence of fraud my touch several people, institutions and organizations.

What is fraud?

  • Insurance fraud occurs when someone intentionally deceives their insurance provider about an insurance matter to receive money or other benefits that are not rightfully theirs. It can be classified as “hard” or “soft”
  • Hard fraud is a deliberate attempt to either stage or invent an accident, injury, theft, fire (through arson) or other type of loss that would be covered under an insurance policy
  • Soft fraud, which is sometimes called opportunity fraud, occurs when a policy holder or claimant exaggerates a legitimate claim. This type of fraud is identified when a person has an actual loss, but over reports their losses in an attempt to replace items with items of greater value, or to take advantage of benefits that they may not be entitled to'

Who does fraud affect?

  • Emergency responders such as police, fire and EMS workers who respond to the scene of a faked accident
  • Our health system, when it is forced to accommodate claimants who seek treatment for non-existent injuries, while people with legitimate health concerns are forced to wait
  • Several legitimate businesses including auto mechanic shops, tow truck companies and contractors are all negatively impacted through lost time and wasted resources
  • The customer is affected most of all. The insurance industry estimates that a minimum of 15 cents of every dollar paid in insurance premiums are paid to cover fraudulent claims submitted to insurance companies


Steer clear of those who would try to make you an innocent victim in a fraudulent claim. Innocent people are often at risk of becoming entangled in fraud when they are unwittingly involved in “staged collisions” or when they are offered service by fraud perpetrators

  • If you are in a collision, make sure you obtain the proper information from the other party and report the claim immediately to the authorities and your insurance provider
  • If you need to use a tow truck, be sure to contact your insurance company first. They can provide a list of trusted vendors who can help when you need it most. You should also carefully read everything the tow truck driver asks you to sign
  • Keep detailed records of medical treatments connected to a claim. Be sure to include: all dates, locations, who provided the treatments and what diagnoses and services you received
  • Never take referrals offered by a stranger and never sign a blank insurance form
  • Report fraudulent activity when you encounter it 

Join the Fight against Fraud and Report it

We can all be active in protecting ourselves and stopping fraud when we see it, and reporting it is the first step in helping to solve the problem. If you suspect you’ve been involved in a fraudulent situation or have witnessed or heard about something you think may be insurance fraud, report it. 

To Report Insurance Fraud:

Call: 1-800-IBC-TIPS