In November 2025, Alberta’s RCMP released a warning about a ghost broker scam that was discovered just outside of Red Deer. The scam was discovered after a driver was involved in a crash and produced their proof of insurance for police. However, the document detailed an insurer called, ‘All Covered Canada’, which does not exist.

The driver had been victimized by a ghost broker scam.

Insurance brokers and agents can help existing or potential clients by creating awareness around ghost broker scams, sharing how to spot red flags and explaining what to do if someone thinks they’ve been victimized in an insurance fraud scam.

Ghost brokers are people who pretend to be legitimate insurance brokers or agents, but the insurance policies are fake. Investigators have seen criminals create fake or falsified insurance documents that appear to be legitimate insurance policies. They typically target vulnerable drivers such as younger drivers or new Canadians, as they tend to be less familiar with the insurance industry. Ghost brokers will often use social media to attract people by offering inexpensive car insurance deals that are too good to be true.

Équité’s Director of Investigative Services, Western Canada, Sid Kingma, recommends:

• Always verify the brokers or agency's license through the Alberta Insurance Council,
• Watch for red flags such cash only payments, deals that seem too good to be true or if the agency doesn’t have a physical office,
• Ensure your policy and pink cards are legitimate; issued by a recognized insurer and can be verified, and
• Report suspicious activity promptly. If you suspect you have been sold a fake policy, contact your local law enforcement agency.

Canadians can protect themselves by ensuring that the broker they are speaking to or the brokerage they are dealing with is registered. Albertans can use the Alberta Insurance Council Agent and Agency Lookup here. To report information about insurance crime by phone (available 24/7), please call Équité at 1-877-422-TIPS (English) or 1-866-422-4331 (service en français).

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