Insurance company uncovers 'pervasive' auto body shop scams in Ontario, urges action
Workers at auto body shops deliberately damaged cars, installed used parts but billed for new ones, or invoiced for phantom repairs, according to an investigation by a Canadian insurer that is calling on the government to help in curbing the problem.
Aviva Canada found about half the total expenses submitted for repairs to crashed vehicles during its investigation in Ontario were bogus — an amount the company estimates adds up to hundreds of millions of dollars a year.
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"Nobody has ever really sampled the extent of fraud with any kind of accuracy," Gordon Rasbach, Aviva Canada's vice president of fraud management, said in an interview. "This is the first time in Canada that we're aware of that anyone has actually taken a sample, albeit a small one, at random, and used actual cases in progress to put some kind of numbers on it." Read more about the Insurance company uncovers 'pervasive' auto body shop...