Ghost Broking may be a term that you have never heard before, but it’s the trending car insurance scam that is sweeping the UK.
The Insurance Fraud Bureau revealed that last year, insurers collectively reported more than 21,000 policies that could be connected to this scam.
What Exactly Is A Ghost Broker?
“A “Ghost Broker” is term used to describe a fraudster who pretends to be a genuine Insurance Broker in order to sell fraudulent car insurance. Ghost broking scams have risen in recent years and typically take place on social media, but they can also be facilitated through word of mouth or local businesses.” – Insurance Fraud Bureau
How Does The Scam Work?
“Policies are bought from legitimate insurance companies using false information and then doctored before being sold on to customers. Fake policy documents designed to look like they have been issued by legitimate insurance companies are created and sold on to customers.” – Insurance Fraud Bureau
In 2021, ghost broking victims who contacted Action Fraud reported losses of a staggering £1,950 each, on average.
How Can You Avoid Falling Victim?
Here are some actions that you can take:
✓ Check the seller for legitimate contact details – including phone numbers, email addresses and their registered address.
✓ Check out the Financial Conduct Authority’s website for a list of authorised brokers.
✓ If a good deal seems too good to be true, it most likely is. Your friends and family are there to help – ask them for a second opinion.
✓ Help others by reporting the scam to the IFB Cheatline (powered by CrimeStoppers) on 0800 422 0421 or online. It’s free, anonymous and completely confidential.
If you would like to talk to us about Insurance policy options, please get in touch by contacting us on 01403 785775 or by email at info@omnidavis.co.uk. We would be more than happy to help.
