He was looking for cheap car insurance in N.L. He thinks he found a 'ghost broker' instead

Rob Antle · CBC News

· Posted: May 02, 2025 4:30 AM EDT | Last Updated: 11 minutes ago

A St. John's antheral was precocious buying astir for deals erstwhile his car security came up for renewal.

As helium scanned done WhatsApp groups chiefly aimed astatine newcomers to Newfoundland and Labrador, helium came crossed idiosyncratic advertizing car insurance.

Out of curiosity, helium messaged them, and they messaged back.

It was a bargain complaint — astir $180 a month, erstwhile different quotes helium was getting, arsenic a caller driver, were astir treble that.

"My skepticism was conscionable going each implicit the place," helium said successful a caller interview.

"I wasn't definite of the price. Although it seemed excessively good, I wanted it. But conscionable from my experience, I knew determination was thing incorrect going on."

CBC News has agreed not to place him, due to the fact that of concerns for his safety. 

He had sent the expected security broker idiosyncratic accusation earlier helium realized what was going on, and is present acrophobic astir comments the broker made online astir trying to find him — comments helium perceives arsenic threatening.

And determination was a catch: a request to e-transfer hundreds of dollars to unafraid that rate.

The email code was besides a telltale motion of trouble. It looked akin to a large security company, with conscionable 1 missive successful the difference.

He began sleuthing astir online, and recovered that the domain had lone been registered successful January. There was a interaction sanction and telephone number, but thing to bespeak immoderate links to a morganatic security company.

That led him to lone 1 conclusion.

"It's conscionable immoderate random John Doe making up this worldly and trying to scam radical retired of money," helium said.

WATCH | N.L. antheral warns buyer beware aft encountering what helium believes was a shade broker: 

Instead of a woody connected car insurance, helium is convinced helium recovered a "ghost broker" instead.

CBC News attempted to scope the idiosyncratic helium was dealing with. Emails went unreturned, and the telephone fig has been disconnected.

The head of the domain acceptable up for the email relationship did reply, but lone to contradict immoderate cognition astir the situation, adjacent saying they didn't cognize wherever St. John's is.

Association says newcomers, young drivers targeted

Équité Association is simply a national, not-for-profit radical that works with security companies to combat fraud.

"We are seeing an uptick successful fake security and shade brokers," said Betty Ng, the organization's manager of investigative services successful Ontario.

Ghost brokers tin make falsified security documents that look similar morganatic policies, and merchantability them to unwitting victims.

"They spell outsourcing their customers, similar newcomers to Canada, oregon young drivers who are mostly inexperienced with the security system, oregon done societal media," Ng told CBC News.

Équité Association offers a fig of tips connected however to admit a shade broker scam.

Those see overmuch little prices; a petition for currency deposits without giving a receipt; a penchant to lone pass done societal media oregon a messaging app; usage of a personal, and not business, email address.

"If the terms is excessively bully to beryllium true, it is excessively bully to beryllium true," Ng said.

'Don't instrumentality the deal'

There is nary evidence, astatine this point, that shade brokers are a important occupation successful Newfoundland and Labrador.

Neither the RNC nor the RCMP has seen immoderate cases that lucifer the "ghost broker" description.

The Department of Digital Government and Service N.L., which oversees the security industry, says it has not received immoderate complaints related to shade brokers, truthful it hasn't conducted immoderate investigations connected the issue.

But it has go a interest elsewhere.

Last fall, Alberta's security regulator issued an alert to consumers astir shade brokers.

In precocious September, Alberta superintendent of security Chris Merriman said determination had been an summation successful reports of "unscrupulous individuals purporting to connection automobile insurance."

• Reports of 'ghost brokers' successful Alberta punctual warnings from regulator, security company

Back successful St. John's, the antheral looking online for car security said helium realized thing was decidedly incorrect aft speechmaking a CBC communicative from Alberta.

He ticks respective of the boxes that the manufacture says emblem imaginable targets of shade brokers. He archetypal came to the state arsenic an planetary student, and has lone been driving for 2 years.

He says helium wanted to stock his communicative to pass others — to archer them that what whitethorn look similar a bargain astatine first, whitethorn crook retired to beryllium much occupation than they bargained for.

"Don't instrumentality the deal," helium said.

"I cognize it's going to prevention you a spot of wealth close now, but God forbid you get into a clang oregon determination is thing superior wherever you request your insurance, you're going to get caught eventually."

In the end, helium didn't suffer immoderate wealth himself, but is urging others to beryllium cautious astir their dealings online, and echoed Ng's comments.

"Remember, if something's excessively bully to beryllium true, it is excessively bully to beryllium true."

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