‘Ghost broking’: Stories of scammers promoting faux automotive insurance coverage rise by 30% over 5 years

Stories of “ghost broking”, scammers promoting faux automotive insurance coverage, have risen by 30% during the last 5 years, unique information obtained by Sky Information reveals.

Ghost brokers promote false insurance policies to drivers, manipulate info given to real insurance coverage corporations, or take out insurance coverage and cancel it right away. This leaves folks with out legitimate automotive insurance coverage, which is illegitimate.

Wayne Simpson misplaced over £500 to a ghost dealer.

He was on the lookout for low-cost automotive insurance coverage and noticed an commercial on social media for a deal which was half the worth of different corporations.

“That is when the mud settles, and also you realise it has been a rip-off.”

Aviva was not at fault. Victims are lured in by genuine-looking web sites and are despatched professional-looking invoices.

Mr Simpson acquired insurance coverage paperwork that seemed so actual, they even fooled the police officer on the accident.

“She stated, ‘Your automotive’s not popping up as insured’. Immediately I went to my glove field, pulled the insurance coverage paperwork, confirmed her the paperwork and she or he learn by means of it and stated, ‘That is completely superb’,” he stated.

Police say younger drivers are most certainly to be focused by ghost brokers, partly as a result of they’re typically trying to scale back their insurance coverage prices.

In line with the RAC, virtually half of younger drivers stated insurance coverage prices have been a high concern.

Unique information obtained by Sky Information from Motion Fraud reveals “ghost broking” reviews have risen by 30% since 2019.

Detective Superintendent Tom Hill, head of the Metropolis of London Police’s Insurance coverage Fraud Enforcement Division, stated social media is behind this improve: “There are restricted boundaries to entry for social media accounts to be arrange so folks can take out automotive insurance coverage and unfold the phrase fairly extensively.

“Do your analysis and be sure you’re coping with a real dealer or real insurance coverage firm. If the dialog has been moved on to WhatsApp, for instance, alarm bells must be ringing”.

In 2024, victims of ghost broking misplaced a mean of £2,206.

Victims lose cash to the rip-off after which should pay extra prices to restore their vehicles after an accident. They might additionally face legal prices, a superb or licence factors if discovered to be driving with no legitimate licence.