Ghost Brokers
Insurance deal look too good to be true? It might be a ghost broker scammer...
A "Ghost Broker" is a 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.
How the scam works
- 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.
What are the consequences of driving without insurance?
- Your car may be seized and crushed by the police.
- You'll pay a fixed penalty notice of £300.
- You'll have to buy valid insurance and pay at least £150 to get your car back from the pound.
- You could face court where you might receive an unlimited fine and a driving ban. A criminal conviction can also impact job prospects.
- You could be liable to cover the costs of any injuries or damage caused if you cause a collision while driving without insurance.
How to beat the fraudsters
- Check the seller has a legitimate website, a UK phone number and address
- If buying through a broker, check they’re registered with British Insurance Brokers’ Association (BIBA)
- If buying directly through an insurer, check they’re a member of Motor Insurers’ Bureau (MIB)
- Check your insurance advisor is registered with the Financial Conduct Authority (FCA)
