Arrest made for 25 year old man suspected of 'Ghost Broking' and targeting NHS staff
A 25 year old man has been arrested on suspicion of Fraud by False Representation following a warrant executed at a Luton property this morning (27 May 2020), as a result of an investigation led by the City of London Police’s Insurance Fraud Enforcement Department (IFED), with support from the Insurance Fraud Bureau (IFB).
The individual has been suspected of ‘Ghost Broking’ by selling fraudulent car insurance policies on a range of online platforms. They are also alleged to have been offering discounts to NHS staff as part of the scam.
A 20 year old was also arrested on suspicion of money laundering.
“We’re pleased to have made positive progress alongside our enforcement partners at City of London Police’s IFED. Ghost Broking has far reaching consequences for innocent victims – not only does it leave people out of pocket, but it means they’re driving without valid insurance and could have their car seized which is the last thing people need – especially key workers - during these challenging times. If anyone has seen suspicious car insurance deals being advertised online, they should make us aware by reporting it to the our confidential CheatLine service online or 0800 422 0421.” – Stephen Dalton, Head of Intelligence and Investigations at the IFB.
‘Ghost Broking’ involves fraudsters pretending to be genuine Insurance Brokers and sometimes representing insurance companies, in order to sell fraudulent insurance policies – often to younger people and vulnerable communities.
The insurance scam has been rising in recent years with the IFB’s percentage of live investigations into Ghost Broking doubling since 2015.
The IFB supports law enforcement by investigating organised networks of insurance fraud. IFED were first made aware of the suspect following a tip off from the bureau’s intelligence team.
To learn more about ‘Ghost Broking’, the tell-tale signs and how you can report insurance fraud to the IFB’s CheatLine, please visit our Ghost Broking advice page. Developments in relation to this investigation will be updated onto the IFB’s Media Centre.
