A brokerage targeted by scammers is calling for a better, more structured procedure to help their victimized clients get their money back.
“I think the question that I would suggest to be looked at is: What can any broker like us do to say ‘Stop this,’ or how do you report it to get it stopped?” said David Waserman, president of DMW Insurance Ltd. “That’s where the extreme frustration comes in….
“There should be a very standard procedure for what a victim should do. Why isn’t it published anywhere? Why isn’t there a simple link?”
Scammers purporting to represent DMW Insurance Ltd. used BlackBerry’s Instant messaging function to encourage unwitting consumers to buy “cheap” auto insurance and then pay for the premiums via an email money transferring service.
The scammers had sent the message used four different fake email addresses, all of which contained the ‘DMW’ name within them. DMV Insurance Brokers confirmed with the province’s insurance regulator, the Financial Services Commission of Ontario (FSCO), that it is in no way affiliated or associated with the scam.
But Waserman told Insurance Business he had a difficult time trying to pin down what he or his clients could do to recover the money that had been scammed. (continued)#pb#
He put a notice on his brokerage’s website, www.dmwinsuranceltd.com, alerting customers about the false emails. He put in calls to the police on his clients’ behalf, but was told that the brokerage could not file a report because the company was not a “victim.” He called the insurance regulators and trade association. He called the RCMP. He even called Interac to find out what he should tell his staff about how to help the victims.
Besides acting quickly when it happens, there’s not much a brokerage – or any business – can do if it becomes the target of a scam.
Registered Insurance Brokers of Ontario (RIBO), the self-regulating body of Ontario brokers, says it has been trying to educate the public about some of the oldest scams in the books. The regulator offers tips to consumers on how to recognize insurance scams.
For example, the wired method of transferring funds often gives the scam away. “I would doubt that any reputable intermediary would insist on payment through Western Union or some other such process, as is typically required by scammers,” said RIBO CEO Jeff Bear.
Nowadays, most brokerages are on “direct bill,” meaning the client pays the insurance company directly, either through a payment plan or by cheques. The broker never actually handles the money. Brokerages will also accept payments in person, as well as by mailed cheques and credit cards.
“We have put notices in many local newspapers around Ontario advising or warning consumers of these types of scams and we advise brokerages to be vigilant and do the same in case they ever get targeted,” Bear said.
Specifically, public education campaigns should warn consumers to check with to make sure they are dealing with a licensed broker or insurance company. RIBO and FSCO will have the names of legitimate brokers and insurance companies, respectively, listed on their websites.
