ID theft starts when a criminal purposefully gains access to the victim’s personal information – stealing physical documents or tricking victims into divulging personal information through various schemes, such as phone scams or deceptive online ads. Once a fraudster has personal information from victims, they may use it in many ways.

Below are examples that Équité investigators and analysts have identified as stolen ID theft being used fraudulently in insurance crime:

• Applying for auto loans to finance a vehicle
• Opening a bank account to launder money or commit cheque fraud
• Buying an insurance policy, then submitting a falsified claim
• Concealing an individual’s true identity to orchestrate a staged collision

What are Criminals Doing with Stolen IDs

As the registered vehicle owner, the criminal will then ship the newly purchased vehicle overseas, or re-VIN the vehicle to resell it to an unsuspecting buyer. Once the vehicle has been shipped or sold, the vehicle is then reported as stolen in Canada, and an insurance claim is made.

Auto insurance fraud, including this rising ID theft trend, is known to finance criminal activities, such as drug and gun trafficking, making Canadian communities less safe. In this fraud the criminals are profiting twice:

1. From the sale of the fraudulently purchased vehicle, and
2. Through a fraudulently claimed auto insurance policy.

How to Protect Yourself from Identity Theft

The Canadian Anti-Fraud Centre has provided a list of tips to help Canadians protect themselves from identity theft, including:

• Be wary of unsolicited e-mails, text messages, telephone calls or mail asking you for personal or financial information
• Check your credit reports, bank and credit card statements and report any irregularities
• Shred personal and financial documents before putting them in the garbage
• Retrieve your mail on a regular basis to limit possible mail theft
• When you move, notify the post office and your relevant financial institutions and service providers

What is being done about Identity Theft?

The investigative teams at Équité work in close collaboration with the Canada Border Services Agency (CBSA), Port Authorities, government agencies, Criminal Intelligence Service of Ontario and law enforcement agencies across the country to provide investigative expertise and advanced analytics

ID theft is an example of how insurance fraud hides in plain sight. Équité has invested in leading-edge technology, which is essential for identifying fraudulent patterns across the industry. This technology will shift the entire property and casualty insurance industry from a reactive approach to a ‘predict and prevent’ model, ultimately making a meaningful reduction of these crimes across Canada.

To report information about insurance crime by phone (available 24/7), please call 1-877-422-TIPS (English) or 1-866-422-4331 (service en français). If you would like to remain anonymous, please call our partners at Crime Stoppers (available 24/7) at 1-800-222-TIPS.

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