Rise of dangerous ‘Brokers’ targeting young drivers online

UK insurers reported a 6% rise last year in ‘Ghost Broking’, as more people are being tricked by fake motor insurance deals sold by these so-called brokers. 

The Insurance Fraud Bureau (IFB) warn that Ghost Broking is expected to increase as financial pressures continue.
 
YouGov findings show that one in five 18–24-year-olds are now using social media to search for car insurance deals. This is a prime hunting ground for these fake brokers. TikTok and SnapChat are now amongst the most popular sites for these scams to take place.
 
The IFB is a partner of our charity, and their new awareness campaign highlights this growing issue and ways to safeguard yourself.
 
In one year, the IFB can uncover up to 50,000 fraudulent motor insurance policies, with thousands of these being linked to Ghost Broking activity. Falling for a fake motor insurance deal not only leaves victims out of pocket. They also risk serious consequences, including having their vehicle seized by the police for driving uninsured.

 
Ghost Broking activity can be reported to CheatLine online or by calling 0800 422 0421. Reporting fraud helps to shut it down, protecting others from becoming victims. 

Advice to stay safe

Follow these simple steps to spot the signs of Ghost Broking to protect yourself against it.

• The price is much better than you can find anywhere else
• The seller only wants to communicate via social media or a messaging app (e.g. Whatsapp or Snapchat)
• The advert looks unprofessional and is poorly spelt
• The seller is vague about how they're getting you such a good price
• The seller doesn't have a legitimate website, UK landline number or address
• The seller offers insurance at an upfront cost, despite insurance being meant to be priced based on the risk of the individual  

Do your checks

• If buying through a broker, check they're registered with British Insurance Brokers' Association (BIBA)
• If buying directly through an insurer, check they're a member of Motor Insurers' Bureau (MIB)
• Whether broker or insurer, check they're registered with the Financial Conduct Authority (FCA). If they're not, it's best to avoid them.