Ghost broker sentenced for selling bogus car insurance

A 26-year-old man has been sentenced after selling over a dozen bogus car insurance policies to unsuspecting members of the public, in an act commonly known as ‘ghost broking’.

Mohsin Yousaf of Longshaw Road, Chingford, was sentenced at Inner London Crown Court on 7 March 2024 to 20 months imprisonment, suspended for 18 months, after being charged with fraud by false representation. Yousaf must also complete a 15 day rehabilitation activity requirement, 240 hours of unpaid work and pay £3,095 in compensation.

The successful outcome followed an investigation lead by City of London Police’s Insurance Fraud Enforcement Department (IFED) which was supported by the Insurance Fraud Bureau (IFB) along with five of its insurer members; Aviva, Esure, Markerstudy, Mulsanne, and Sabre.

The case first came to light when a member of the public reportedly purchased a car through a dealership in west London, which recommended Yousaf’s ‘broker’ services. After taking out a Mulsanne insurance policy via Yousaf, which included a £300 administration fee, the victim questioned its authenticity and contacted Mulsanne for help. The victim then learned that the policy details expired in 2019 and originally cited Yousaf as a named driver, and this had been doctored and sold on to the victim.

Mulsanne gave its evidence to the IFB and further investigation found Yousaf had taken out fraudulent policies with a string of insurers which were also being sold on to unsuspecting members of the public, which was shared with IFED.

Yousaf was arrested by IFED officers in March 2022. A search warrant was carried out at his address, and his phone and laptop were seized. The phone held false documents and conversations with victims on WhatsApp, and further false documents were found on the laptop.

Detective Constable James Allwood, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said:

"Yousaf displayed no regard for his customers when he sold them fraudulent policies. He left them unknowingly out on the road with no insurance, exposing them and other drivers to risk and financial loss.

"We know that the rising cost of insurance premiums means that people are always looking for a cheap deal, but it is important to check that you are buying from a legitimate source and that your policy is valid. A fraudulent policy can end up costing you more in the long run in the form of a fine, points on your licence, your car being seized and crushed, and having to cover the cost of a new, valid policy.”

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

“The impact of ghost broking scams is devastating, as not only are victims left out of pocket, but they can also face serious consequences for driving without valid insurance. This is why we’re working extensively with our partners to stop more communities from being targeted. 

“I’m pleased to see that Yousaf has faced justice thanks to our collaborative efforts with IFED and our members. I hope this serves as a warning to those who may think fraud is an acceptable way to make a living, that they will be caught.

“If anyone believes they have evidence of a ghost broking scam, they can report this to the IFB’s confidential CheatLine online or via 0800 422 0421.”

Ghost broking is a common insurance scam in the UK, which involves fake brokers selling car insurance deals to members of the public, through word of mouth and social media. The fraudulent policies are often taken out using stolen personal information from those who would ordinarily be cheaper to insurer, and are then sold on at unrealistically low prices.

Young drivers and those facing financial pressures are most at risk of falling for a ghost  broking scam. YouGov findings (commissioned by IFB) show that only 17% of people have heard of the con.

Not only are victims out of pocket, but because they are driving with fraudulent motor insurance they are not actually insured and could have their vehicle seized by police, and can even face court.

Anyone who believes they have evidence of a Ghost Broking scam can report it to IFB’s confidential CheatLine at www.insurancefraudbureau.org/cheatline or via 0800 422 0421.