The Insurance Fraud Bureau (IFB) has reported a more than 50% increase in ghost broking cases over the past two years, with young and newly qualified drivers identified as the most frequent targets.
The warning follows a surge in fraudulent car insurance deals being advertised on social media platforms, including Facebook, Instagram, Snapchat and TikTok.
Ghost brokers pose as legitimate insurance intermediaries, often promoting discounted insurance offers via social media or through fake websites. Communications are typically moved to encrypted messaging apps such as WhatsApp to avoid detection.
The schemes tend to exploit drivers facing high insurance premiums, particularly young motorists purchasing cover for the first time or those seeking learner driver policies.
According to a YouGov survey commissioned by the IFB, 18% of drivers aged 18–24 have used social media to look for car insurance. This demographic is considered especially vulnerable to offers that appear attractive but result in policies that are invalid or never issued.
The consequences for victims are financial and legal. Those who unknowingly purchase fake policies may lose hundreds or thousands of pounds. They also risk being found without valid insurance, which can lead to their vehicle being seized by police, six penalty points, a £300 fine, and a possible court referral with the potential for an unlimited fine or driving disqualification.
An earlier report from Aviva revealed that nearly one-third (30%) of young drivers have unknowingly purchased invalid car insurance from illegal operators on social media platforms.
The insurer found that 89% of young drivers who purchased car insurance on social media experienced significant problems.
Consequences included instances of policyholders’ details being misrepresented, leading to invalid policies (49%), claims being denied (22%), a lack of assistance from sellers when issues were raised (21%), and police stops resulting in vehicle impoundment or fines (17%).
New data from the IFB and insurance industry partners revealed approximately 115,000 fraudulent motor insurance policies were identified between 2023 and 2024. Ghost brokers are believed to account for a significant share of these cases. The broader cost of insurance application fraud is estimated to exceed £1 billion annually for the UK economy.
In response, the IFB has launched a new awareness campaign in collaboration with the Association of British Insurers (ABI), the City of London Police, and the government’s Stop! Think Fraud initiative. The campaign aims to inform the public about ghost broking tactics and encourage reports via CheatLine, the industry’s confidential reporting service.
Ursula Jallow, director at the IFB, said new drivers are particularly susceptible due to higher premiums and limited experience in purchasing insurance.
“The impact is devastating,” Jallow said. “We’ve seen victims lose thousands of pounds, have their identities stolen, their confidence and self-esteem shattered, and in some cases, they have even had their car seized for driving uninsured."
Jallow added that it is important to raise awareness to help safeguard young motorists and highlighted the role of the Stop! Think Fraud campaign in bringing attention to the issue.
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