Exclusive data from Sky News indicates a worrying 30% rise in “ghost broking” scams over the past five years.
Ghost brokers deceive motorists by selling non-existent car insurance policies, manipulating details provided to legitimate insurance firms, or cancelling policies soon after setting them up. This scam leaves drivers without legal insurance coverage.
One victim, drawn in by a seemingly lucrative offer on social media, only realised the fraud after an accident. He explained his shock upon learning from Aviva that no policy existed under his name, and the contact number provided was unrecognisable by the insurer.
Even law enforcement can be deceived by the sophistication of the fake documents produced by ghost brokers. In one incident, the authenticity of the fraudulent insurance paperwork misled a police officer at the scene of a car accident.
The City of London Police notes that young drivers are particularly vulnerable to these scams, as they often seek the most affordable insurance options.
Research from the RAC confirms that insurance costs are a significant concern for nearly half of young drivers.
Detective Superintendent Tom Hill, from the City of London Police’s Insurance Fraud Enforcement Department, highlighted the role of social media in the proliferation of these scams, noting the ease with which fraudulent accounts can be created and used to distribute fake insurance offers.
In 2024, the average financial loss per victim of ghost broking was estimated at £2,206. Beyond the immediate financial losses, victims face further expenses from vehicle repairs post-accident and potential legal consequences for uninsured driving, including fines and points on their license.
Authorities advise drivers to thoroughly research and verify the credentials of insurance brokers and companies. They also warn of red flags such as transactions being directed to platforms like WhatsApp, suggesting potential fraud.
As ghost broking continues to rise, motorists are urged to stay vigilant against offers that appear too good to be true, ensuring they are insured legally to avoid severe repercussions.
