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Car insurance scam: 'More people' have been 'deceived' by fake agreements sold online

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It comes as restrictions begin to ease in the UK, raising fears a similar resurgence could be targeting road users across all age groups. The Insurance Fraud Bureau (IFB) and the City of London Police’s Insurance Fraud Enforcement Department have urged road users to not be caught out by fake policies.

They warn ghost brokers will promote unrealistically cheap car insurance agreements on social media channels and online adverts.

However, these agreements are often taken out with fake information meaning the policy is not personal to the driver and legitimate.

This means road users will not be covered for damage in the event of an accident and may even be fined for not traveling with legitimate insurance cover.

The IFB said they have recorded an 81 percent increase in new ghost broking investigations since 2015.

READ MORE: Drivers risk losing £500 in common car insurance scam

“If anyone has seen evidence of insurance fraud, they should report it to our confidential Cheatline as soon as possible, and we can work with the authorities to stop the scam”.

The IFB said the surge in Ghost broking scams last year followed a surge in motorsports making Statutory Off Road Notifications (SORN) during the pandemic.

They say over half a million cars were SORN’d in the first four weeks of lockdown which meant insurance policies were cancelled.

The IFB says road users can easily check whether an insurance provider is likely to be genuine or false.

This rises to one on three among drivers aged between 18 to 24 years old. 

However, according to the IFB, only two-thirds of people said they wouldn’t check if a seller had a legitimate website before buying car insurance.

Meanwhile, 95 percent of British road users have not heard the term ghost broking and are unaware of the scam.

This means thousands of road users are likely to be caught out by ghost broking scams and be left with worthless agreements.



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