Fraudulent Insurance Brokers on Social Media
“Ghost brokers” often sell false policies to drivers on social media, manipulate
information given to genuine insurance companies, or take out insurance and cancel it straight away. This leaves people without valid car insurance, which is illegal.
Victims are lured in by genuine-looking websites and are sent professional-looking invoices. They receive insurance documents that appear to be real.
Police say young drivers are most likely to be targeted by ghost brokers, partly because they are often looking to reduce their insurance costs.
People only discover they are uninsured when they either try to make a claim or police check the insurance details.
Detective Superintendent Tom Hill, head of the City of London Police’s Insurance Fraud Enforcement Department, said social media is behind this increase: “There are limited barriers to entry for social media accounts to be set up so people can take out car insurance and spread the word quite widely.
“Do your research and make sure you’re dealing with a genuine broker or genuine insurance company. If the conversation has been moved on to WhatsApp, for example, alarm bells should be ringing”.
In 2024, victims of ghost broking lost an average of £2,206. Victims lose money to the scam and then have to pay additional costs to repair their cars after an accident. They could also face criminal charges, a fine or licence points if found to be driving without valid insurance.
Source article from Sky News – link below:
‘Ghost broking’: Reports of scammers selling fake car insurance rise by 30% over five years | UK News | Sky News
- Please ensure the company you are dealing with is genuine.
- Avoid adverts that pop up on social media.
- Use well known comparison sites to get quotes for insurance.
If you have been scammed or duped into contracting with a business or a trader and parted with money, please report to Citizens Advice Consumer Advice Line on 0808 223 1133 or go to the following website to report online: https://www.citizensadvice.org.uk/consumer/get-more-help/if-you-need-more-help-about-a-consumer-issue/