Trend in Auto Repair Fraud: Unjustified Invoicing

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Unjustified invoicing practices by auto repair shops have been around for decades. However, Équité Association investigators and analysts are seeing a rise in this type of fraud again. Untrustworthy organizations who have been identified by the insurance industry for purposeful, fraudulent practices are starting to resurface using different business names.

Unjustified invoicing practices in the auto repair industry include unnecessary work performed, parts invoiced as replaced but not actually replaced, replacements for undamaged vehicle parts, parts deliberately damaged (then repaired), and work not completed among other examples.

Insurance fraud is often deeply complex and requires specialized investigative knowledge and expertise. In order to combat this re-emerging trend in auto repair fraud, Équité member-insurers have access to specific anti-fraud expertise and technology designed to identify, disrupt and prevent insurance and related criminal offences. Équité’s investigators and analysts are aware of how this fraud is perpetrated and specialize in uncovering fraudulent patterns, sharing intelligence with members.

ÉQ Insights is a tool that brings industry data together in one place. Through effective fraud monitoring, the platform proactively identifies bad actors exploiting multiple insurers, and across products. With these new capabilities, Équité is providing innovative, analytical services that will empower our members to protect Canadians from fraud and insurance crime.

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