The City of London Police’s Insurance Fraud Enforcement Department (IFED) led a nationwide operation targeting illegal insurance activity linked to ‘ghost brokers’.
The initiative, which ran from May 19 to May 30, resulted in the arrest of two individuals - a 37-year-old woman in Luton and a 22-year-old man in south London - suspected of involvement in selling fraudulent motor insurance and laundering proceeds.
‘Ghost brokers’ claim to offer discounted vehicle insurance, often through social media or informal networks. The policies sold are typically forged, based on false details, or cancelled shortly after purchase. Victims usually discover the fraud when stopped by police or when making a claim.
IFED worked with police forces across the UK, using Automatic Number Plate Recognition (ANPR) technology to identify vehicles potentially linked to ghost broking. Officers carried out roadside checks and engaged with drivers to raise awareness of the issue and its risks.
The operation followed a 52% increase in detected ghost broking activity between 2022 and 2024, according to figures from the Insurance Fraud Bureau (IFB).
Detective chief inspector Nik Jethwa said the campaign disrupted offenders and helped collect intelligence for further investigations. He said IFED would continue to use enforcement powers, including asset recovery, to pursue those involved.
Seven ‘cease and desist’ notices were issued to individuals suspected of low-level involvement in fraudulent broking. These notices are used to educate and formally warn recipients, who may not be fully aware of the legal implications of their actions.
On May 19, Manchester Magistrates’ Court granted account forfeiture orders totalling £48,195. The funds, held in three bank accounts linked to suspected ghost broking, were seized following a financial investigation. The account holder had received a warning from IFED in a previous operation.
IFED also coordinated with social media platforms to address online promotion of fake insurance services. Sixty-two accounts on Facebook, TikTok and Instagram were submitted for removal.
The campaign also included public awareness messaging advising drivers to avoid buying insurance from unverified sources and to check broker credentials through the Financial Conduct Authority or the British Insurance Brokers’ Association.
