Ghost broking

If you need car insurance, be wary of heavily discounted prices on the internet or cheap prices you are offered directly. They’re most likely fraudsters using a method known as ‘ghost broking’.

How it works

These individuals or groups, known as ‘ghost brokers’, pose as middlemen for well-known insurance companies, claiming they can offer you legitimate car insurance at a significantly cheaper price. It is typically carried out by one of three ways: they will either forge insurance documents, falsify your details to bring the price down, or take out a genuine policy for you, before cancelling it soon after. Whichever way is used, you won’t realise you don’t have genuine cover unless you get stopped by police or make a claim.

How to protect yourself

• Avoid buying insurance policies that are offered on social media and messaging apps like WhatsApp, Instagram, Snapchat and TikTok.
• Be wary of insurance brokers who advertise their services on private community groups or by placing adverts in pubs, cafes, newsagents, motorcycle repair shops and motorcycle dealerships.
• Do not buy insurance from brokers who ask for payments in cash or via bank transfer. Legitimate insurance brokers will take payments via an online portal.
• Avoid insurance brokers who use personal email addresses and mobile phones as a method of contact when trying to sell you a policy.
• Check on the Financial Conduct Authority or the British Insurance Brokers’ Association website for a list of all authorised insurance brokers: register.fca.org.uk and biba.org.uk
• You can also contact the insurance company directly to verify the broker’s details.
• You can check to see if your car is legitimately insured on Navigate: https://enquiry.navigate.mib.org.uk/checkyourvehicle

If you think that you’ve been a victim of a ghost broker, you can report your concerns to Report Fraud at reportfraud.police.uk or on 0300 123 2040.

You can also contact the Insurance Fraud Bureau via its confidential Cheatline on 0800 422 0421 or at insurancefraudbureau.org

Resources

Report Fraud and the City of London Police have created a leaflet explaining the dangers of ghost broking and how to protect yourself from it.