The public must be vigilant when searching for their insurer online, warns the Insurance Fraud Bureau (IFB), as it's revealed that victims of paid ad spoofing scams could be facing up to £13,000 in unsolicited fees.

Paid ad spoofing scams involve unscrupulous firms paying for search engine ads that mimic those of genuine insurers. The victim, who needs to contact their insurer to make a claim, can unwittingly contact a third party while believing they’re dealing with their insurer, only to rack up thousands of pounds in fees which otherwise could have been covered by their policy.

Recent YouGov findings show only one in five people (18%) have heard of paid ad spoofing scams and with millions using insurance services every day, countless consumers are at risk. As a result, the Insurance Fraud Bureau (IFB) has launched a national campaign to highlight the signs of the scam and to encourage people to report it to CheatLine.

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

“Paid ad spoofing is a malicious and calculated practice which can have a devastating impact on victims. Unscrupulous firms will deliberately pay for search engine ad results that misrepresent genuine insurers. Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything.

“We’re working with insurers and the police to raise awareness and the message is simple - save your insurer’s contact details so you have it to hand if needed and report any signs of paid-ad spoofing scams to our confidential CheatLine.”

It can happen to anyone

Amy, a 25-year-old Camera Assistant from Liverpool, was returning home after visiting friends in early 2024. While driving along a dual carriageway at 50mph, a driver cut in front of her and caused a collision. She knew she had to contact her insurer as soon as she got home. Still shaken, she searched for her insurer on her phone’s browser and called a number on a sponsored ad and provided her details, while being completely unaware it was a third party.

The man on the other end of the phone had been helpful, however Amy thought it was unusual that he hadn’t asked for her policy number. When she told her father, Carl, who is coincidently a counter-fraud Manager at Aviva, he realised she’d been targeted by a paid ad spoofing scam. Together, they made a series of exhausting phone calls over several hours, to finally withdraw from financial arrangements so Amy wouldn’t face unsolicited charges.

Amy commented on the experience: “I'd never think that I'd be the type of person to be scammed from something like this, but these people are very good at what they do and they'll get you when you don't think you're in a position to be caught, so it's important to be careful and check everything when searching for your insurer.”

"The scourge of misleading online ads is an issue that affects all motorists and insurers. At Aviva, we believe prevention is better than cure, which is why we are working with the IFB to highlight the serious financial implications of paid ad spoofing. We suggest that drivers save their insurer’s claims number in their phones or keep it handy in their vehicles.

“When customers mistakenly respond to misleading online ads, we take immediate action to identify and investigate, sharing intelligence with the IFB and relevant regulators. Our proactive monitoring of ads that breach Google's terms has led to successful takedowns of misleading ads and associated web domains.

“We've seen too many instances where customers contact us about a claim, only to find they never made a claim with Aviva. Imagine the concern when customers realize they don’t know who they are dealing with, what they have agreed to, or the implications of these agreements. This confusion puts customers at risk of extreme financial harm: they enter agreements for services like recovery, storage, repair, and hire, believing these costs are covered by their insurance. However, if these costs aren't recovered from the other party's insurer, the customer may be liable.

“There should be no situation where a customer is misled about the identity of the company they are dealing with or the financial implications of the agreements they have signed."

How do paid ad spoofing scams work?

A paid ad spoofing scam is when a claims firm pays for a search engine ad result which shows up when someone is looking for their insurer. The ads are similar in style to that of a genuine insurer’s and are more likely to appear in mobile phone searches, to encourage people to call through quickly.

Over the phone, the firm may use general terminology to sound like the insurer or to imply that they are affiliated with them. The victim is asked for their personal details to receive ‘support services’ such as a replacement vehicle, and potentially make a claim, which can result in unsolicited third-party agreements.

While any insurance customer can fall victim, those who have been in a road traffic collision are most at risk as they may be shaken after an accident and not thinking as clearly when looking to make a claim. Victims may also believe their fully-comp motor insurance covers everything, but as they don’t know they’re not talking to their insurer, they can sign up to more and more services and it may be weeks until they discover the charges.

Who pays these fees varies. If the other driver is at fault, the firm will claim against their insurer to recover the costs of its unsolicited services. In these cases, the affected individual may not realise they have been linked to a scam. Or, if the other insurer doesn’t believe all the charges as justified, then the victim of the paid ad spoofing scam may still face some costs.

However, if the other driver is not at fault of the collision, the onus is entirely placed on the person who was mislead into contacting the claims firm for support, to cover all costs that otherwise could have been included with their insurance policy. These fees can run into tens of thousands of pounds and can result in non-stop threatening calls to the victim from third-party firms. In one case, a victim was even pursued to cover over £50,000 in unsolicited fees.

Not only can victims suffer a financial loss, but there is also evidence some firms linked to paid ad spoofing activity have stolen personal information to use in further fraudulent activity.

The IFB is currently investigating 140 claims linked to paid ad spoofing worth over £1.8 million in suspected fraud, however it's believed these figures only scratch the surface as many people are unaware they've been targeted.

Top tips to avoid paid ad spoofing scams

• Keep your insurer's contact details written down or saved on your phone.
• Download your insurer's app as this usually has customer service support functionality.
• If searching for your insurer online, go on the insurer's website to obtain contact details.
• If viewing a sponsored ad result, check the website URL and phone number to ensure it's legitimate, before sharing any personal information and agreeing to claims services.
• If anyone has concerns relating to paid ad spoofing scams, they should tell their insurer and contact the IFB's confidential CheatLine online or via 0800 422 0421.