UK motorists are being urged to exercise extreme caution after a leading insurer uncovered nearly 7,000 cases connected to a sophisticated car insurance scam known as 'ghost broking'.
What is Ghost Broking?
Experts from Go.Compare are raising the alarm about fraudsters who pose as legitimate insurance sellers. These ghost brokers typically advertise on social media, online marketplaces, and forums, luring in drivers with deals that seem too good to be true. They specifically target individuals who are searching for a cheap insurance premium.
Tom Banks, a car insurance spokesperson for Go.Compare, detailed the deceptive methods used. "A 'ghost broker' might pretend to take out a policy for you, providing fake documents to make it look real, when in fact no policy exists," he explained.
How the Scam Operates
The fraud can take several forms, all designed to leave the victim without valid cover and out of pocket.
- Fake Policies: The criminal creates counterfeit insurance certificates, leaving the driver completely uninsured.
- Altered Details: A policy is taken out, but the driver's address or history is changed to secure a cheaper price. The ghost broker charges the victim more and pockets the difference. The policy is invalid, and claims will be rejected.
- Policy Cancellation: A legitimate policy is initially set up but is then quickly cancelled by the fraudster after they have taken your payment.
Last year, Aviva alone identified nearly 7,000 cases linked to open investigations into this type of fraud.
What to Do If You Are a Victim
Tom Banks provided clear advice for anyone who suspects they have fallen victim to a ghost broker. "Contact the insurer you believe holds your policy immediately to explain the situation," he said. This step is crucial to ensure you are not held responsible for any fraudulent activity.
He also stressed that if your insurance is not legitimate, you must secure a new policy straight away, as it is illegal to drive an uninsured vehicle. Furthermore, a detailed report should be made to Action Fraud.
For drivers seeking genuine savings, there are safe and legal ways to find cheaper car insurance without resorting to risky deals from unverified sources.
