Fraud Findings: Aviva warns of sharp rise in auto-related scams

Toronto, Ontario -- New data from Aviva Canada shows a staggering 76 percent increase in fraud investigations in 2024, with auto-related cases making up 67 percent of all claims, according to a recent report.

From staged crashes and re-VINed stolen vehicles to AI-generated fake invoices, fraud schemes are becoming more sophisticated—and repair professionals are often caught in the middle. Not only do fraudulent claims inflate insurance costs, but they also lead to delays, disputes, and unpaid work for legitimate repairers.

"Insurance fraud costs Canadians $1 billion annually, but the real impact goes beyond premiums," says Jamie Lee, head of financial crime and fraud at Aviva Canada. "It disrupts the repair process, creates friction between insurers and body shops, and erodes trust across the industry. Repairers need to stay alert to these schemes because they are often the first to spot red flags in suspicious claims."

Fraud tactics affecting body shops in 2025:

Aviva Canada has identified five key fraud trends that are putting pressure on insurers, repairers, and consumers alike:

Staged auto accidents

• Aviva saw a 47percent increase in staged crashes in Q4 2024, many tied to organized crime groups.
• These incidents result in bogus repair claims, unnecessary parts orders, and disputes over payments—all of which waste time and resources for legitimate shops.

Vehicle theft and re-VINing

• Auto theft cases remain above pre-pandemic levels, with a 58% jump in investigations in late 2024.
• More stolen vehicles are staying in Canada, thanks to tighter border security. Fraudsters are altering VINs and reselling stolen cars—some of which end up in repair shops with false documentation.

AI-powered fraud

• Bad actors are using AI to alter invoices, fake damage photos, and create false repair estimates.
• This makes it harder for insurers and repairers to verify claims, leading to delays in approvals and disputes over payments.

Ghost brokers

• Unlicensed individuals posing as brokers sell fake policies or manipulate insurance details to get lower rates.
• When these fraudulent policies are exposed, legitimate repairers can be left chasing payments for uninsured customers.

Policy misrepresentation

• Fraudsters lie about vehicle use, address, or modifications to lower premiums.
• When claims arise, insurers may deny coverage—leaving repair shops in the difficult position of pursuing unpaid bills.

Why collision repairers must stay vigilant:

Fraud doesn’t just hurt insurers—it creates real problems for body shops, from disputes over payment to processing delays that clog up production schedules.

"Every fraudulent claim adds more complexity to the system," says Lee. "Shops that stay alert, document repairs thoroughly, and question suspicious claims play a crucial role in stopping fraud before it escalates."

How repairers can protect themselves:

Verify customer details—Check VINs, ownership, and claim documentation for inconsistencies.
Document everything—Detailed repair photos, timestamps, and estimates can help prove legitimacy if a claim is flagged.
Report suspicious claims—If something feels off, flag it to insurers or fraud prevention authorities.
Fraud isn’t going away, but with awareness and collaboration, repairers can help protect their businesses and the industry.

For more fraud prevention tips, visit Collision Repair Magazine.