According to the latest government statistics , Canadian police investigated a record 178,532 fraud reports in 2024, a nearly 120% increase from the 81,179 incidents they investigated in 2014. While Statistics Canada data does not distinguish between types of fraud, there’s a good chance that insurance-related fraud is playing a significant role in the increase in police-reported fraud incidents.
“Many people underestimate how seriously insurers and police investigate suspected fraud,” says Robbie Tsang , co-managing partner at Mass Tsang. “ Even relatively small misrepresentations can trigger criminal investigations.”
Indeed, numerous recent business news headlines have warned of a “ staggering ” rise in insurance fraud, with one of the country’s largest insurers — Aviva Canada — reporting a 2024 year-over-year 46% increase in claim fraud detection and a 76% rise in its insurance fraud investigations.
Among recent articles citing the surge in Canadian insurance fraud was one from the Financial Post reporting that some Canadians may be committing insurance fraud without even knowing it. The article noted that many Canadians don’t realize that small omissions or outdated information in their policies or claims could constitute insurance fraud.
From a legal standpoint, the Greater Toronto Area theft and fraud defence lawyers of Mass Tsang agree that such misrepresentations could be considered fraudulent. However, proving in court that such actions constitute fraud requires the Crown to prove an “intent” by the alleged offender to deceive.
With this in mind, let’s take a closer look at insurance fraud and examine what someone should do if Canadian police charge them with the offence. Read on.
Whether you are arrested at your doorstep or summoned to court with insurance fraud charges, the first thing to keep in mind is to keep your mouth closed. Do not speak to the police, insurance investigators, or anyone else about the alleged offence unless you clear it with your criminal defence lawyer.
“One of the biggest mistakes people make is trying to explain themselves to investigators before speaking with a lawyer,” explains Jeff Mass . “Those early statements often become critical evidence.”
Speaking of defence lawyers, if you don’t have one, you should hire one as quickly as possible if you are charged with insurance fraud or believe you are under police or insurance investigation for the offence. A competent theft and fraud lawyer, like those at Mass Tsang, can prove invaluable at helping you navigate your way to a successful case outcome. Their criminal defence efforts will include:
Another early step you should take when facing insurance fraud charges is to gather and preserve all relevant documents, communications, receipts, or records so that you can share them with your defence lawyer. Do not alter, destroy, or create new related information, as the Crown may find a way to use this against you in the case.
| Recommended Step | Why It Matters |
|---|---|
| Remain silent | Prevents self-incrimination |
| Hire a fraud defence lawyer | Protects legal rights and strategy |
| Preserve documents and records | May support your defence |
| Avoid speaking to investigators | Statements may be used against you |
| Review disclosure with counsel | Identifies weaknesses in Crown evidence |
| Type of Insurance Fraud | Example |
|---|---|
| False claims | Claiming damage that never occurred |
| Exaggerated claims | Inflating repair or replacement costs |
| Staged accidents | Intentionally causing collisions |
| Policy misrepresentation | Providing false information for lower premiums |
| Forged documents | Fake invoices, receipts, or medical records |
| Ghost brokering | Selling fake or manipulated insurance policies |
Insurance fraud is the intentional use of deceit, falsehood, or other fraudulent means to obtain money, benefits, or services from an insurer that a person is not otherwise entitled to. Some common examples of insurance fraud include submitting false or exaggerated claims, falsifying documents to secure higher payouts, staging incidents to collect insurance payouts, and lying on policy applications to secure lower premiums.
“Fraud cases frequently turn on intent,” notes Robbie Tsang . “The Crown must prove deliberate dishonesty, not simply confusion or an honest mistake.”
Insurance fraud cases in Canada fall under the purview of the Criminal Code’s Section 380(1) fraud provisions. Simply put, the Section defines the commission of fraud as anyone “who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service.”
The Code mandates that fraud involving amounts greater than $5,000 be charged solely as an indictable offence, with a maximum punishment upon conviction of 14 years’ imprisonment. Fraud involving amounts below $5,000 is a hybrid offence that can be charged by indictment or summary conviction, with both carrying a maximum punishment of two years’ imprisonment.
If you’re facing insurance fraud charges in the Greater Toronto Area, secure the best criminal defence possible with the theft and fraud legal experts at Mass Tsang. With more than 20 years of experience successfully defending over 1,000 GTA clients from such charges, Mass Tsang’s defence lawyers are committed to securing positive outcomes that negate the possibility of a criminal record and help preserve clients’ reputations. To learn more about our fraud insurance defence expertise, contact us today for a free consultation.
“A strong defence strategy developed early can dramatically improve the outcome of a fraud case,” says Jeff Mass . “Early legal intervention often makes a major difference.”
A: In recent years, police and insurers have reported a significant increase in their investigation of the following five types of insurance fraud:
| Defence Strategy | Purpose |
|---|---|
| Lack of intent | Show no deliberate deception occurred |
| Honest mistake | Demonstrate error rather than fraud |
| Weak evidence | Challenge reliability of Crown case |
| Charter Rights violations | Exclude improperly obtained evidence |
| Negotiated resolution | Seek diversion, reduced charges, or discharge |
A: Determining how to strategize an effective defence against insurance fraud charges depends in large part on the case-specific facts, quality of the evidence, credibility of the accused, and severity of the charges. The most common defence strategies involve:
A: Generally, not, provided there is no evidence of deliberate deceit or subjective awareness of the risk to the insurer. However, mistakes borne of recklessness or willful blindness are more likely to skate the fraudulent line and subject the offender to charges.
A: Probably not, if the fraudulent amount is less than $5,000. The Crown tends to prosecute first-time, low-level fraud as a summary conviction offence. While the maximum sentence is two years’ imprisonment, most first-time offenders face probation, fines, restitution, and community service, or can get the judge to approve a conditional discharge. That said, if the fraudulent amount exceeds $1 million, a conviction carries a maximum two-year prison term.
