In a cost-of-living crisis, ghost broking scams are on the rise.

What is a ghost broker?

Ghost brokers are fraudsters who appeal to motorists by offering cheap motor insurance deals. The policies they sell are not worth the paper they're written on leaving their customers uninsured. Many will be unaware they are not insured until they face the consequences of being stopped by the police or when they attempt to make an insurance claim.

How it works

Ghost Brokers are prolific on the internet offering cheap car insurance deals via Facebook, Twitter, Instagram, and other social media platforms, appealing mainly to younger drivers. They also target victims via student websites, marketplace websites and even ads in pubs, clubs, newsagents, and repair shops.

What to look for

• Fake policy documents are designed to look like they have been issued by a genuine insurer
• Genuine policies are taken out before being cancelled soon after
• Policies are bought from legitimate insurance companies using false information, including cloned credit cards.

Our police helpline is often at the forefront of spotting ghost brokers and have previously helped the police and the Insurance Fraud Bureau bring ghost brokers to justice. We often see the first signs of ghost brokers before they become more widely known.

Look out for these known scams

We recently received enquiries from our police colleagues about multiple policies from Insure 4 a Day with the same policy number but different drivers and vehicles. Once a genuine insurer; the company no longer trades as Insure 4 a Day. So, if you are provided with an Insure 4 a Day policy starting in 2023 it is likely the policy holder is the victim of a ghost broker. The genuine insurer now trades under the name Insure Daily.

Know the signs

• Documentation is poor quality or has spelling mistakes 
• The driver says they purchased the policy via social media or another unusual way to buy insurance
• The driver has contacted the broker via mobile phone, email, WhatsApp, Facebook or other social media platform.

If something doesn't look right, give us a call

Our police helpline has close relationships with fraud teams at insurers.  We can confirm with them whether the policy is genuine or not.

If no genuine policy exists, then the vehicle will not be insured and can be seized.

Get as much information as you can and report insurance scams to Cheatline, the IFB's confidential reporting service on 0800 422 0421 or online www.insurancefraudbureau.org.

Useful information when reporting ghost broking

• IP address history
• Bank account details where money was paid to
• Social media account pages.