The UK's top policy fraud hotspots

Analysis of over 2.4 million insurance policies by the Insurance Fraud Bureau (IFB) has revealed the top policy fraud hotspots, as the public are warned of a rise in identity theft. 

New analysis highlights hotspots across the UK

IFB’s analysis of over 2.4 million policies found that areas in West Yorkshire, Greater Manchester and the West Midlands top the list for England. While Glasgow leads in Scotland, areas in the Isle of Anglesey in Wales, and County Fermanagh in Northern Ireland top their respective hotspot lists.

The hotspots follow an unprecedented rise in identity theft, with the IFB reporting a sevenfold increase in stolen details used for insurance scams over the past year (2024). As a result, the public is urged to watch out for signs of their details being misused and report insurance fraud to CheatLine. 

Twisting the truth on insurance applications 

Policy fraud is when an insurance application is made using stolen or false details. Much of this involves criminals stealing personal information to take out fraudulent policies that enable wider scams, leaving victims in distress and financial hardship.

While identity theft is a key driver in policy fraud, there may also be instances of opportunistic fraud in hotspot areas, with people using false details to reduce insurance costs, such as by submitting a false no claims discount (NCD) or not disclosing a full driving history.

An IFB-commissioned YouGov survey found that nearly one in five people (17%) would find it acceptable to lie on an insurance application to help save money - an issue potentially linked to financial hardship.

To help protect people from making a costly mistake, the IFB has been reminding the public through its ongoing Fraud Cons campaign, that what might seem like a small lie to save on the cost of insurance is still fraud. This could lead to a record on the Insurance Fraud Register (IFR), making it harder to get insurance for years to come, and a potential criminal charge.

Police officer talks to male driver in car.

Insurance scams using stolen details are on the rise. While anyone can be targeted, insights suggest insurance fraudsters often steal details from those they believe are cheaper and easier to insure - including people over 60 or individuals seen as financially secure or low-risk.

Jon Radford, Head of Intelligence, Investigations and Data Services at the IFB

Ghost broking – victim or perpetrator?

Some holders of ghost broking policies – the term referring to policies created by scammers posing as legitimate insurance brokers – may have fallen victim to the scam via social media. By taking out a policy with a ghost broker, the policyholder can save a substantial sum in comparison to a legitimate policy. Once again, this can be linked to issues of financial hardship.

However, others may be fully aware of what they’ve purchased and the insurance fraud they’re a part of. Perpetrators may be attempting to utilise ghost broking policies to fool police during roadside stops, especially in instances where they would be unable to obtain a policy from a reputable provider – this includes individuals driving on disqualified licences.

Three common methods of ghost broking

1

Genuine policies

They buy a genuine policy on behalf of their victim, often using incorrect details, that they cancel shortly after purchase and take the refund money.

2

Fake documents

They send over fake documents or give access to fake apps that look genuine but won’t provide real cover.

3

Stolen IDs

They use stolen IDs to take control over existing accounts with insurers or to buy new fraudulent policies.

Example ghost broking policies

dayisure slide showing differences between genuine and fraudulent motor insurance certificates.

Genuine versus fraudulent certificates

Two example ghost broking policies using legitimate insurer templates.

Utilising legitimate-looking templates

Reporting insurance fraud

1

Industry support

Evidence of an insurance scam can be reported to the IFB’s confidential CheatLine online or via 0800 422 0421.

Advice is also available to help anyone who believes their details may have been used in policy fraud. 

2

Police intelligence

City of London Police's IFED also accepts intelligence from forces, including the outcome. Complete intelligence on your system and request your Force intelligence Bureau to share the intelligence with City of London Police, sending it to IST@cityoflondon.police.uk marked as OP DEVORAN.

Other motor insurance scams

Find out how uninsured driving links to different types of fraud and how to spot them.

Person wearing dark hoodie and not showing their face on black background.
Scam

Ghost broking

Scammers pose as legitimate insurance brokers to sell fake policies, often targetting new, inexperienced drivers who can't afford a traditional policy, or those looking to hide other criminal activity.

Two young men inside the front of a car.
Scam

Fronting

Often seen as an innocent loophole to help reduce costs, fronting involves naming a more experienced driver such as a parent as the main policyholder. In reality, it is often a new or young drvier who is the main driver of the vehicle.
Motorbike and rider wearing all black including black balaclava.
Scam

Crash for cash

In a bid to make bogus insurance claims and steal personal information, scammers cause deliberate collisions whilst often driving with fraudulent motor insurance policies in place.