- November 28, 2025
- Category: News, Home, Commercial, Tips & Advice
The holiday season is usually about family and goodwill, but it’s also a peak time for scams. This year, fraudsters are using a terrifying new tool: Artificial Intelligence.
In Atlantic Canada, police forces are issuing urgent warnings about sophisticated AI voice cloning and deepfake scams targeting seniors, homeowners, and small businesses. These attacks are convincing, confusing, and costly.
At Cluett Insurance, our priority is to be your trusted guide in a rapidly changing world. Here’s how AI-generated fraud affects your personal and business insurance, and the crucial steps you need to take before 2026.
How Deepfakes Are Hitting NS & PEI Families
AI has made it simple for criminals to mimic the voices and communication styles of people you trust. The most common personal scams currently impacting Nova Scotians and Islanders include:
Rental Property Scams: AI-generated ads for non-existent rental properties in high-demand cities like Halifax or Charlottetown, duping desperate renters into sending a deposit via e-transfer.
The Deepfake “Grandparent Scam”: Criminals clone a grandchild’s voice using just seconds of social media audio, calling an elderly person (a major target in our region) claiming to be in a car accident or arrested, demanding immediate bail money.
Fake Insurance/Broker Emails: Highly realistic phishing emails pretending to be from your insurer or broker, asking you to “urgently update your payment information” or “verify your policy” through a fake link to steal credit card details.
The Threat to Local Small Businesses
For local companies in Atlantic Canada, AI scams are moving beyond simple phishing and targeting the bottom line:
- The AI Invoice Scam: An employee receives a deepfake email or voice call seemingly from the CEO or a trusted vendor, urgently demanding a transfer of funds to a new bank account to pay an overdue invoice. The call/email is nearly indistinguishable from the genuine article.
- Widespread Data Theft: Scammers use AI to write convincing malware and viruses, increasing the risk of a data breach that compromises customer and vendor information.
What Insurance Actually Covers (And What It Doesn’t)
When a scam results in financial loss, the coverage often depends on the type of policy you have:
| Policy Type | Potential Coverage Area | Key Exclusions/Caveats |
|---|---|---|
| Homeowners Insurance | May cover limited amounts of fraud or identity theft expenses (e.g., credit monitoring) if you have a specific rider. | Does NOT cover funds willingly transferred via e-transfer or wire, this is typically seen as a voluntary loss. |
| Commercial Liability | Generally NOT covered. This policy covers third-party bodily injury or property damage | Financial loss from scams or criminal activity is excluded. |
| Cyber Insurance (for Businesses) | YES. This policy is designed to cover financial losses from Social Engineering Fraud (the AI invoice scam) and costs related to data breaches. | Requires a specific Social Engineering rider on your policy. |
Your Local Broker: The Best Line of Defense
In this confusing digital landscape, the value of a local broker you can actually call is more important than ever. Cluett Insurance doesn’t just sell you a policy; we are your financial guide:
Identity Theft Education: We can review your Home policy and ensure you have the best available coverage to mitigate costs if your identity is stolen due to an AI breach.
Verification and Guidance: If you receive a suspicious email, text, or call claiming to be from us, call our office directly to verify the information before clicking any links or sending money. We are a human safety net.
Tailored Cyber Coverage: We can assess your small business risk and ensure you have the correct Cyber and Social Engineering Fraud riders on your Commercial policy.
In the digital world, trust is your greatest asset. Reinforce that trust with a local expert who is ready to protect you. Contact Cluett Insurance today to update your personal and commercial cyber protections.
Call or Contact to schedule your review today. →
Have questions? Give us a call or stop by our Dartmouth or Summerside office. We’re always here to help you protect what matters most.