Thousands of motorists could be uninsured because of ‘ghost’ policy scams

Thousands of motorists in the UK could be driving uninsured vehicles without realising it because of scams by ‘ghost brokers’, police have warned.

A national campaign by the City of London Police’s Insurance Fraud Enforcement Department (IFED) has been launched to make the public aware of con merchants who are using social media to trick motorists into buying fake insurance policies.

Action Fraud, the national fraud and cyber crime reporting centre run by the City of London Police, received more than 850 reports linked to ‘ghost broking’ between November 2014 and October 2017. Individuals and organisations lost around £631,000 in total over the period, with each victim being cheated out of an average of £769.

The IFED took action against offenders in 417 of the reported cases, including a man who set up 133 fake policies and another who made £59,000 as a result of ‘ghost broking’.

But the department believes that the number of unreported cases could be much higher, as a result of motorists being unaware of their illegitimate policies.

Analysis by the IFED also revealed that men aged 20 to 29 were most likely to be targeted, with contact through Facebook and Instagram the most common ways the fake policies were being offered.

IFED head Detective Chief Inspector Andy Fyfe said: “Ghost brokers trick unsuspecting victims with offers of heavily discounted car insurance, leaving them with a policy that isn’t worth the paper it’s written on and open to the severe harm that comes with driving without valid insurance.

“As well as the personal harm experienced by victims, ghost brokers also cause financial harm to the insurance industry, driving up the cost of insurance premiums for all motorists. While an offer of cheap car insurance may seem tempting, falling victim to ghost broking will end up costing you far more in the long run – both in terms of money and your licence.”

Mark Godfrey, managing director of RAC Insurance, said: “This is a very disturbing crime, which takes advantage of young male drivers who are naturally keen to take out cheaper car insurance as they are paying the highest premiums in the market due to the higher risk.

“We urge every young driver to be extremely wary of approaches from so-called insurers via social media. Whenever considering insurance cover, drivers are best advised to choose a reputable motor insurer and to ensure they check all of their paperwork. If a deal sounds too good to be true then it probably is.”