To support your roadside operations and traffic stops, we're highlighting how Ghost Broking is resulting in more uninsured drivers on the roads, the signs to look out for, and how MIB can provide further information.

This week, the IFB (Insurance Fraud Bureau) - which is run by MIB -  has launched an industry campaign to encourage the public to be savvy to fake insurance scams. This campaign is in partnership with insurers and IFED (Insurance Fraud Enforcement Department) of City of London Police.

A partnership pack has been sent to all forces by IFB, containing more information as well as social media assets you can share to keep the public in your region safe from this scam. It can also be downloaded here. 

What is Ghost Broking?

‘Ghost Broking’ is the name given to a scam used by fraudsters who pose as genuine insurance brokers and sell fraudulent insurance policies.

Whilst some drivers are aware that they are in possession of a Ghost Broking policy, to try and dupe officers during roadside stops, others are unfortunately innocent victims trying to save money on increasing insurance policy costs. Ghost Brokers typically lure in their victims on social media, on channels such as Facebook, Instagram, TikTok and Snapchat, where they offer ‘discounted’ but fraudulent insurance policies.

There are three main types of Ghost Broking policies:

• Fake policy documents are designed to look like they have been issued by legitimate insurance companies. However, these insurance companies do not actually exist and are either impersonating a well-known insurer, such as Aviva, or posing as an insurer.
• Genuine policies are taken out before being cancelled soon after.
• Policies are bought from legitimate insurance companies using false information, including cloned credit/debit cards. They are then doctored to fit the details of the victim.

The issue is widespread. On any given year, the IFB can uncover up to 50,000 fraudulent motor insurance policies with thousands of these being linked to Ghost Broking activity.

Despite its prevalence, a recent YouGov survey revealed only one in ten people are familiar with Ghost Broking, which means millions of vulnerable people remain susceptible.

By targeting younger people, who are typically more expensive to insure, with unrealistically cheap car insurance deals, Ghost Brokers often leave their customers out of pocket and unaware that their policy is fake until they try to make a claim or are stopped by the police. If stopped by the police, a driver with fake insurance faces the same consequences as any other uninsured driver.

What to look out for

• Details not matching up between the policy and the policyholders’ licence (most likely to be the date of birth or home address)
• Documentation looks unusual, poor quality or has spelling mistakes
• The policyholder advises they had taken out the insurance via social media or another unusual way/place to purchase insurance
• The driver has only had contact with their ‘broker’ via mobile phone, email, WhatsApp, Facebook messenger or even Snapchat
• They mention that they got a deal that is too good to be true
• The ‘broker’ doesn't have a legitimate website, UK landline number or address

What should you do when you have stopped a driver and suspect Ghost Broking?

During our Police Helpline open hours (Mon – Sat, 9am – 5pm):

We have direct access to fraud teams at many insurers. We can confirm with them whether the policy is genuine or not.

When our Police Helpline is closed:

• You can raise an out-of-hours enquiry here
• You can do some initial checks:
  • If the policy was bought through a broker, check they’re registered with British Insurance Brokers’ Association (BIBA)
  • If the policy was bought directly through an insurer, check they’re a member of MIB (Motor Insurers' Bureau)
  • Check the insurance provider is registered with the Financial Conduct Authority (FCA)

If no genuine policy exists:

• The vehicle will not be insured and can be seized.
• You can make a report to IFB CheatLine (powered by CrimeStoppers), as can the driver. This can be anonymously on 0800 422 0421 or online. Please provide:
• IP address history
• Bank account details where money was paid to
• Social media account pages

The PHL is at the forefront of spotting Ghost Brokers, helping the police and the IFB bring them to justice. We often see the first signs of a new Ghost Broker before they become more widely known in the industry. If you are unsure, do not hesitate to contact our Police Helpline to verify any policy.