The City of London Police’s Insurance Fraud Enforcement Department (IFED) has launched a national awareness campaign to warn motorists about the dangers of buying fake car insurance from fraudsters, also known as ‘ghost brokers’, who are potentially leaving thousands of unsuspecting victims driving without insurance. It’s no joke.
Extent of the problem
From November 2014 – October 2017, Action Fraud, the national fraud and cyber reporting centre, hosted by the City of London Police, received more than 850 reports linked to ghost broking, with reported losses for both individuals and organisations totalling £631,000. On average, each individual victim lost £769.
Of these reports, 417 resulted in action being taken against the offenders by IFED, following their investigations into ghost broking over the past three years, which included a man who set up 133 fake policies, a teenage ghost broker who was sentenced to jail and a man who made £59,000 from ghost broking.
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