The Insurance Fraud Bureau (IFB) has issued a warning to consumers about paid-ad spoofing scams, a fraudulent practice that could leave victims facing up to £13,000 in unexpected fees.
Paid-ad spoofing involves claims firms purchasing search engine advertisements designed to imitate legitimate insurers. Consumers searching online to contact their insurer – often to make a claim – may inadvertently reach these third-party firms, leading to financial losses. These firms typically charge fees for services that victims believe are covered under their insurance policies.
According to YouGov research, only 18% of the public is aware of paid-ad spoofing scams. With millions of people relying on insurance services daily, the IFB is working to raise awareness through a national campaign.
The bureau is urging the public to recognise the signs of these scams and report suspicious activity to its CheatLine.
Jon Radford (pictured above), head of intelligence, investigations & data services at the IFB, described the practice as a calculated scheme that preys on vulnerable individuals.
“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,” Radford said.
Paid-ad spoofing scams primarily target people who are searching for their insurer’s contact details online, particularly on mobile devices. The ads resemble those of legitimate insurers, and the firms behind them use vague language to appear affiliated with the victim’s insurer.
In extreme instances, victims have been pursued for tens of thousands of pounds. The IFB reported one case where a victim faced over £50,000 in charges linked to unsolicited services. Victims can also face persistent collection efforts from third-party firms, adding further stress to their financial losses.
The IFB said that it is currently investigating 140 claims linked to paid-ad spoofing, valued at more than £1.8 million in suspected fraud. However, the organisation believes the true scale of the problem is much larger, as many people remain unaware they have been targeted.
Pete Ward, head of claims counter fraud at Aviva, noted that misleading online advertisements are a significant issue for both insurers and consumers.
“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,” Ward said.
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