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.

Elliott Silverstein, Director, Government Relations at CAA Insurance brings focus to the auto theft crisis in Canada and shares how they are working to protect clients and the communities they live in. The Canadian Automobile Association (CAA), established in 1903, has a long history of advocating for its members. CAA insurance was the first to offer a discount for using winter tires and introduced CAA MyPace, Canada’s first pay-as-you-go auto insurance program.

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

• Elliott Silverstein (ES): In recent years, CAA Insurance has focused on the growing issue of auto theft in Canada. Auto theft is a significant concern for Canadian drivers, with a CAA Insurance survey revealing that 69% of respondents view it as a national crisis, while 43% are worried about their cars being stolen. CAA Insurance was the only consumer-facing organization at the 2024 National Summit on Combatting Auto Theft, advocating for drivers and emphasizing the need for public education on vehicle security.
  
  CAA Insurance believes that everyone has a role in combating auto theft and has called for greater collaboration among stakeholders. We have called on government to update outdated immobilizer standards, which have not been revised since 2007, to keep pace with technological advancements. The rise of smartphones and tablets has made it easier for thieves to steal vehicles, highlighting the need for modern security measures. According to a CAA Insurance survey, 86% of respondents believe that auto manufacturers should do more to prevent car theft.

Équité: How have fraud trends changed overtime?

• ES: Consumers appreciate features like keyless entry in their vehicles. However, these conveniences have also been exploited by thieves to gain quick access to cars. Therefore, it's crucial to balance convenience with security, ensuring drivers feel confident their vehicles are safe from increasingly sophisticated digital theft methods.

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

• ES: To enhance vehicle security, CAA Insurance suggests implementing multi-factor authentication (MFA), a common security measure in banking and other sectors, but not yet standard in vehicles. Given that a vehicle is a significant investment for consumers, second only to a home, they need and deserve greater protection.

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

• ES: Auto theft is not a victimless crime. The impact is profound, with CAA Insurance likening it to a year-round catastrophic event for the insurance industry but without any end in sight. The hidden costs of auto theft for consumers include emotional distress, long wait times for new vehicles, higher interest rates, and increased prices for purchasing or leasing cars.
  
  CAA Insurance has promoted several tips for consumers to protect their vehicles, such as using steering-wheel locks, storing key fobs in Faraday pouches, installing aftermarket immobilizers, and enabling MFA in vehicles. We also recommend parking in secure locations, using motion sensors and cameras, and keeping valuables out of sight.
  
  By advocating for updated standards and educating consumers, CAA Insurance aims to reduce auto theft and its associated impacts, ensuring that drivers are better protected in the future, with the peace of mind that their vehicles are secured.

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.