Ghost brokers
Find out more about fraudulent Co-operators financial representatives, how to spot them, and who to contact if you suspect fraud.
Ghost brokers represent themselves as licensed insurance brokers – but they’re not licensed to sell insurance where they operate, meaning you could be left vulnerable or at risk of fraud.
What are the risks of working with a ghost broker?
There could be consequences if you deal with a ghost broker for your insurance:
- Falsified coverage: Your policy could be invalid, meaning you won’t have coverage for your home or vehicle, and any claims could be denied.
- Auto risks: If you are driving without valid insurance, you could face legal issues and fines, or your license could be suspended.
- Financial loss: You could end up paying for false services and not be able to recover the money paid to a ghost broker.
- Stolen identity: Ghost brokers could leak your personal details to hackers or fraudsters, leaving your identity and finances at risk.
How can I spot a ghost broker?
Here are some of the warning signs to watch for if you’re dealing with a ghost broker:
- Unrealistic prices: If the price you’re being quoted for a policy is too good to be true, it probably is.
- Unusual meeting places: Meetings that take place in a public space or private residence.
- Personal contact info: The broker’s contact information is a personal email or phone number, or they reached out to you through a personal social media account.
- Strange policy documents: There’s unfamiliar contact information on your policy documents or it has incorrect policy details.
- Communication red flags: Their communications with you often require urgency, have spelling mistakes, or look unprofessional.
- Side payments: There’s a request for a side payment of up to $200, either in cash or e-transfer, to open a policy.
For the latest information on suspected fraudulent brokers, check our consumer alerts.
How can I tell if I’m working with a Co-operators financial representative?
You can use our search tool to find a financial representative in your area or to verify a financial representative’s contact information. Here’s what you can expect from an authentic Co-operators financial representative:
- Fair prices: Your quote should be a fair price; to get an idea of what to expect, you can check online for a quote.
- Safe meeting spaces: Official Co-operators financial representatives have offices for their meetings.
- Professional contact info: A Co-operators representative will have a Co-operators email and phone number to their office.
- Accurate policy documents: Your policy documents should have the correct information for you and your financial representative.
- Empathetic communication: We’ll never rush you into making a decision and only contact you using your preferred methods.
- No additional fees: We’ll never ask for payments, other than your premium, to open a policy.
Who can I contact to report fraud?
Have you been victim to a ghost broker, or suspect an advisor you’re working with to be fraudulent? You don’t need to be 100% certain to report fraud. Even if your report is based on reasonable suspicion, we will investigate to make sure you and all our clients are protected from fraud.
- Call the Co-operators fraud or tip hotline: 1-833-320-3210
- Or email us at: report_fraud@cooperators.ca
- If you’re not comfortable reporting directly to us, you can get in touch anonymously with Crime Stoppers Canada: 1-800-222-8477 in English, or 1-866-422-4331 in French.
Learn more about the risks of ghost brokers
Andy Dykstra, Associate Vice President of Enterprise Fraud at Co-operators, and Bryan Gast, Vice President of Investigations at Équité, discuss ghost brokers, the rising risks of fraud, and how to keep yourself protected.