Fraud Prevention Month is an annual awareness campaign which aims to educate Canadians on how to recognize and protect themselves from becoming a victim of fraud. Insurers are doing more than ever before to protect their customers, and by joining Équité Association, members have access to specific anti-fraud expertise designed to prevent and disrupt insurance crime.

Chris Vinall, Senior Leader, SIU & Triage, Verify Fraud and Financial Crime Investigative Services at Aviva Canada, shares insights into the trending fraud of staged collisions and how technology has been a game-changer when working to identify fraud and protect customers and communities. Aviva Canada is the second largest property and casualty insurance group in the country, providing home, automobile, lifestyle, and business insurance to 2.5 million customers.

Équité: Fraud Prevention Month, what type of insurance fraud would you like to raise awareness about and why?

• ‍Chris Vinall (CV): We’re seeing a spike in staged accidents, a particularly dangerous and pervasive form of insurance fraud. Staged accidents generally involve multiple individuals conspiring to intentionally cause or fabricate an auto accident to file fraudulent claims for vehicle repairs, towing and storage fees, rental car fees, as well as medical and disability claims. These claims not only drive-up premiums for all insurance customers, they may also victimize innocent motorists and tie up first responders from actual emergencies.
  
  There are many variations of this type of scam, but they may be linked to organized crime groups operating in Canada. We need to continue to educate the public on how to recognize the signs of staged accidents and help prevent the costly consequences they bring to communities.  

Équité: How have fraud trends changed overtime?

• CV: Staged collisions have evolved over the years, and bad actors have been getting more sophisticated and brazen in terms of their tactics. In the past we would see simple cases where the damage to a vehicle would not match the corresponding damage to the other vehicle(s) or objects involved. However, these days it’s becoming increasingly more common for vehicles to be deliberately crashed into one another, often with high-speed impacts, that increase the likelihood of a total loss of the vehicle. Where it used to involve older, high mileage vehicles, we’re now seeing newer, high-end vehicles being used.  
  
  Staged car crashes can be elaborate. Some may add in additional passengers (in some cases children with allegedly damaged car seats), fake injuries, or even collude with healthcare professionals to create fake medical reports. Fake employment documents, including fabricated or altered paystubs, bank statements and tax documents may also be used to perpetuate long-tail disability claims.  

Équité: What is your organization doing to protect your clients and the communities they live in from the impacts of insurance fraud?

• ‍CV: Aviva has one of the best counter-fraud teams in the industry, composed of investigative and analytics experts who are passionate about stopping fraud and bringing our purpose to life every single day: to protect Aviva customers and Canadians from fraud and financial crime.
  
  We have invested heavily in our people, as well as advanced fraud detection technologies, including data science analytics. Additionally, we have pooled industry network fraud tools, to analyze patterns and identify suspicious policy and claims transactions more quickly and accurately. We also work closely with law enforcement and other organizations to share information and collaborate on investigations. We take pride in bringing real stories and tips to our customers and the general public through our advocacy work and the information we publish in our Fraud Hub. By being proactive, we can reduce fraud and the negative ripple effect it has on premiums, claims processes, community trust, and customers.

Équité: How is technology influencing how you approach fraud detection?

• ‍CV: Staged collisions can be difficult to detect and prove as fraudulent, especially when the vehicles involved are deliberately crashed into one another.  
  
  Technology has been a game-changer in fraud detection. Analytics tools allow us to examine large amounts of data & intelligence and identify patterns or behaviors that might indicate fraudulent activity. We can now flag suspicious claims faster than ever before and prevent potentially fraudulent payouts.
  
  We work closely with forensic and mechanical experts to support our investigations, including taking advantage of advancements in mobile, security & vehicle technology and telematics. These advancements are helping us better understand the circumstances of accidents and making it more difficult for bad actors to stage incidents without being caught. With these tools, we're able to provide better protection to our customers and ensure the integrity of the insurance system for everyone.
  
  Fraud trends change rapidly, which is why it’s mission critical that our team adapt and evolve to improve our ability to detect new and emerging fraud schemes.

Fraud always has a victim, and criminals typically target those who are the most vulnerable. On behalf of the insurance industry, Équité works with decision-makers to close gaps and vulnerabilities in existing regulations and policies. In collaboration with Équité Association, our members are working to protect Canadians against insurance fraud and crimes.