RIBO Warns of Fake Auto Insurance Scam Spreading on Social Media

TORONTO, ON – April 23, 2026 – Ontario's insurance regulator has issued an urgent public warning about a sophisticated auto insurance scam operating on social media, leaving unsuspecting drivers financially exposed and legally vulnerable. The Registered Insurance Brokers of Ontario (RIBO) is alerting consumers to an individual allegedly impersonating a licensed broker to sell fraudulent auto insurance policies, primarily through Instagram.

According to RIBO, multiple complaints have surfaced regarding an individual using account names such as "Insurebyraman," "Insurancewithraman," and "raman_insurance77." This person allegedly collects payments from consumers for auto insurance, provides them with fake electronic proof of insurance, or "pink slips," and then ceases all contact. The documents appear legitimate, but insurers later confirm that no actual policy exists, leaving the victims completely uninsured.

This scam highlights a growing trend of financial fraud migrating to popular digital platforms, where anonymity and a broad audience create a fertile ground for deceptive practices. The warning underscores the critical need for consumer vigilance when purchasing essential services online.

The Anatomy of a Digital Deception

The scheme preys on consumer trust and the convenience of digital transactions. Fraudsters advertise seemingly attractive insurance deals on platforms like Instagram, luring in those seeking to save money on high premiums. To build a veneer of legitimacy, the individual behind the 'Insurebyraman' accounts has reportedly shown victims screenshots of a real, licensed broker's credentials, effectively hijacking a legitimate professional's identity to perpetrate the fraud.

Once a victim expresses interest, the scammer requests payment via e-transfer to a personal email address—a major red flag in the insurance industry. After the funds are sent, the consumer receives a forged digital 'pink slip.' For a short time, they believe they are legally insured. The illusion shatters when they attempt to contact the insurer for verification or, in a worst-case scenario, after being involved in a traffic incident or a police stop. At this point, the scammer has typically blocked the victim and disappeared, making recovery of the funds nearly impossible.

RIBO has confirmed that licensed brokerages and insurance companies have verified that the documents being issued are counterfeit and that a real broker's identity is being exploited. To help the public avoid this specific scam, the regulator has released a list of known accounts and contact details to avoid:

• Instagram: Insurebyraman, Insurancewithraman, raman_insurance77
• Phone: (437) 375‑6281
• Emails: [email protected], [email protected], [email protected]

While social media platforms like Instagram have policies against fraud and impersonation, enforcement remains a significant challenge. Scammers can create new accounts almost as quickly as old ones are reported and taken down, forcing regulators and consumers to remain in a reactive posture.

Uninsured and Unaware: The Devastating Fallout for Victims

The consequences of falling for this scam extend far beyond the loss of the initial payment. In Ontario, driving without valid auto insurance is a serious offense with severe penalties. The financial and legal fallout can be life-altering.

Under the province's Compulsory Automobile Insurance Act, a driver convicted of operating a vehicle without insurance faces fines ranging from $5,000 to $25,000 for a first offense. For subsequent offenses, the fines can climb as high as $50,000. In addition to the hefty financial penalty, consequences can include an immediate suspension of the driver's license for up to one year and the impoundment of their vehicle for up to three months.

The most catastrophic risk, however, is the personal liability in the event of an accident. An uninsured driver is personally responsible for all damages and injuries they cause. This includes repair costs for other vehicles, medical rehabilitation for injured parties, and potential lawsuits that can easily run into hundreds of thousands or even millions of dollars, leading to potential bankruptcy and wage garnishments for years.

Victims of the scam are left in a precarious position. Because no legitimate policy was ever issued, there is no insurance company to file a claim with. Recovering the money sent via e-transfer is exceptionally difficult, as these transactions are often irreversible. The primary recourse is to report the crime to local police, but tracking down anonymous online perpetrators who may be operating from anywhere in the world is a complex and often lengthy process with no guarantee of success.

A Regulatory Tightrope in the Digital Age

This incident casts a spotlight on the immense challenges that regulatory bodies like RIBO face in policing their industries in an era of borderless digital commerce. RIBO's mandate gives it authority over its licensed brokers, allowing it to investigate complaints and impose disciplinary actions such as fines or license revocations. However, its power is limited when the perpetrator is an unlicensed individual impersonating a broker.

In cases of criminal fraud and impersonation, RIBO's role is to warn the public and collaborate with law enforcement agencies, which take the lead on the criminal investigation. This creates a complex jurisdictional web. As one cybersecurity analyst noted, "These online fraudsters exploit the gaps between industry regulation, law enforcement, and the policies of multinational tech platforms. They thrive in the grey areas."

Experts in the insurance industry confirm that this type of fraud is not an isolated event but part of a persistent and evolving threat. The methods change—from classified ads in the past to social media today—but the core deception remains the same. The challenge for authorities is keeping pace with the technology that fraudsters so readily exploit.

This situation has amplified calls for greater collaboration between regulators, police services, and social media companies to create a more proactive and unified front against digital fraud. Faster takedowns of fraudulent accounts and more robust identity verification for those advertising financial services are among the measures being discussed to better protect consumers.

How to Protect Yourself from Insurance Fraud

As this investigation continues, RIBO is emphasizing that consumer awareness is the first and most effective line of defense. The regulator provides clear guidelines to help drivers avoid falling victim to insurance scams.

First and foremost, be extremely cautious of insurance offers made exclusively through social media or messaging apps, especially if the prices seem too good to be true. Legitimate brokers and insurers may have a social media presence, but the entire transaction will not typically be conducted through direct messages.

Never send payments for insurance coverage via e-transfer to a personal email address. Licensed brokerages have formal, corporate payment systems. An insistence on an e-transfer to a generic email like a Gmail account is a major warning sign.

Crucially, always verify the legitimacy of a broker or brokerage. RIBO provides a public online directory where consumers can instantly check if a broker is licensed and in good standing. This can be accessed at https://www.ribo.com/consumer-information/licensee-directory-status. Do not rely on screenshots of a license sent by the seller, as these can be easily faked or stolen.

Finally, after purchasing a policy, do not assume you are covered. Contact the insurance company listed on your policy documents directly using a phone number from their official website—not one provided by the broker—to confirm that the policy is real and active before you drive.

Anyone who believes they may have been affected by this or a similar scam is urged to contact their most recent legitimate insurer, report the incident to RIBO's complaints department at [email protected], and file a report with their local police service.