(NC) -- The very first step when buying insurance, or when you shop for a mortgage, is to verify that the company and the individuals selling it are licensed, says the provincial regulator the Financial Services Commission of Ontario (FSCO). Fraud prevention is a top priority for the regulator – and since this problem lurks everywhere, consumers are advised to be especially cautious with insurance, loans and mortgage arrangements. Fake auto insurance, for example, is an all too common scam.

Remain alert and learn how to spot 'scammer red flags' by subscribing to the Warning Notices posted on the FSCO website. These warnings are issued when specific entities are believed to be of concern to the public and the business community. To protect consumers, FSCO says it monitors and investigates, and if non-compliance with legislation and regulations is found, it will take enforcement action.

The next time you seek financial services, keep these security tips handy:

• Read FSCO's past Warning Notices at: www.fsco.gov.on.ca/warningnotices.

• Subscribe to receive alerts on future scams and warning notices at: www.fsco.gov.on.ca/subscription.

• Before you purchase any financial services product, check to make sure you are dealing with a licensed company or individual at: www.fsco.gov.on.ca/licencecheck.

• Never sign blank forms.

• Carefully read any contracts or forms that you are asked to sign, and ask questions if you don't understand something.

• Don't pay advance fees. Scammers will usually request up-front fees for various taxes, attorney fees, transaction fees or bribes.

If you're shopping for auto insurance, here are some additional tips for protecting yourself:

• Exercise caution when responding to advertisements that do not provide the name of a licensed company or brokerage, or that claim to offer auto insurance at extremely low rates.

• Do not pay your auto insurance premium by wire or with an e-mail money transfer. These are not common practices in the insurance industry.

• Do not pay a referral fee. Licensed insurance agents and brokers do not generally charge you fees.

• If an agent or broker completes a form on your behalf, check it for accuracy. By signing the contract, you are agreeing to the statements made to the insurance company.

FSCO reminds consumers that if they purchase insurance from agents or companies that are not licensed in the province, they're not protected under the Ontario Insurance Act. In addition, consumers should not use the services of an unlicensed mortgage brokerage, broker or agent, as they will not be protected under the Mortgage Brokerages, Lenders and Administrators Act, 2006, a law that holds this sector to specific standards.

More information is available online at www.fsco.gov.on.ca.