Breaking: Rise in ‘Ghost Broking’ Scams Leaves Drivers without Insurance

By Evans Momodu
3 minute read

Reports of "ghost broking" scams—where fraudsters sell fake car insurance—have surged 30% over the last five years, according to exclusive data obtained.

Ghost brokers lure victims by advertising cheap policies on social media, manipulating information given to legitimate insurance companies, or taking out policies and cancelling them immediately. This leaves victims unknowingly driving without valid insurance, which is illegal.

One victim, Wayne Simpson, lost over £500 after purchasing what he believed was a genuine Aviva insurance policy through a social media advert offering prices at half the market rate.

Only after being involved in an accident did he realise he had been scammed. When he tried to file a claim, Aviva informed him that no policy existed in his name.

"That's when the dust settles, and you realise it's been a scam," Simpson said.

Fraudulent Policies Fool Even Authorities

Many victims receive convincing fake documents that even police officers mistake for real insurance.

Simpson recalled how an officer initially accepted his paperwork: “She said, ‘Your car's not popping up as insured.’ I pulled out the insurance documents and showed her. She read through them and said, ‘That’s totally fine.’”

How to Avoid Ghost Broking Scams

• Verify the broker by checking the Financial Conduct Authority (FCA) register.
• Avoid deals on social media that seem too good to be true.
• Confirm your policy directly with the insurance company before making any payments.

Authorities are urging drivers to stay vigilant, as ghost brokers continue to exploit those seeking cheaper car insurance.
Source: Sky news