City of London Police leads nationwide crackdown on ‘ghost broking’

The City of London Police’s Insurance Fraud Enforcement Department (IFED) has led a nationwide period of action targeting illegal insurance brokers, known as ‘ghost brokers’, in a coordinated crackdown on insurance fraud.

During the period, which ran from 19 to 30 May, officers carried out a series of targeted operations, resulting in the arrest of two individuals – a 37-year-old woman in Luton and a 22-year-old man in south London. They are believed to be key players in an organised criminal network involved in the sale of fraudulent insurance policies and the laundering of illicit profits.

IFED also utilised Automatic Number Plate Recognition (ANPR) technology to work with police forces across the country to educate drivers on ‘ghost broking’ and the risks of this type of fraud.

‘Ghost brokers’ pose as middlemen for insurance companies, claiming to offer legitimate car insurance at a significantly cheaper price.

In reality, the policies sold by ‘ghost brokers’ are either invalid or fraudulent, as they will forge insurance documents, falsify customer details to bring the price down, or take out a genuine policy but cancel it soon after. Most victims will not realise that they do not have genuine cover until they are stopped by police or try to make a claim.

The period of action took place as new figures released by the Insurance Fraud Bureau (IFB) show that the volume of ‘ghost broking’ activity it detected increased by 52 per cent from 2022 to 2024.

Detective Chief Inspector Nik Jethwa, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said:

“‘Ghost brokers’ leave their victims out of pocket and exposed to the same consequences as uninsured drivers. As part of the national lead force for fraud, IFED is dedicated to working with our policing and industry partners across the country to disrupt these criminals and protect the public.

“Our collaborative work during this period has enabled us to stop offenders and gather intelligence, which we will now look to develop and act upon. The message of these operations is clear: there is nowhere to hide for criminals who sell fake insurance. IFED will use every tool at its disposal to hold offenders to account, including removing the assets they have obtained through criminal activity.”

As part of the ANPR operation, IFED worked in partnership with other police forces to carry out vehicle checks and engage with drivers, in order to raise awareness of ‘ghost broking’ and how to recognise the warning signs.

The activity followed intelligence received from the IFB and MIB (Motor Insurers’ Bureau) concerning vehicles potentially linked to ‘ghost broking’. IFED arranged for the vehicles to be added to ANPR and instructed Roads Policing Units across the country to share intelligence gathered during traffic stops.

The operation resulted in forces sharing information with IFED, including intelligence around suspected ‘ghost brokers’, and social media and bank accounts used to facilitate the sale of fraudulent policies, for further investigation.

In one instance, officers from Northumbria Police seized a car which did not have valid insurance, demonstrating the consequences drivers can face if they do not purchase insurance from a legitimate source.

John Davies, Intelligence and Investigations Manager at the Insurance Fraud Bureau (IFB), said:

"We’re pleased to have collaborated with IFED in this vital action to combat ‘ghost broking’. Fraudulent motor insurance sales have devastating consequences. Victims are left out of pocket and emotionally distressed, and they're also driving uninsured which puts innocent road users at risk. 

"Our close collaboration with the police and insurers is crucial in stopping this latest rise in fraudsters who are targeting the public with bogus insurance deals. We urge everyone to watch out for the signs of ‘ghost broking’ activity, and to report any suspicions of insurance fraud to our confidential CheatLine."

Further operational activity saw seven ‘cease and desist’ notices served to offenders. The use of ‘cease and desist’ as a tactic is intended to educate offenders who may not realise that their actions are illegal. Once a notice has been served, IFED will continue to monitor the recipient to ensure that they do not reoffend.

Account Forfeiture Orders worth a total of £48,195 were granted at Manchester Magistrates Court on 19 May. The funds were forfeited, after they were seized from three bank accounts linked to ‘ghost broking’ activity. The owner of the accounts was served a 'cease and desist' notice by IFED officers last year.

IFED also worked with social media platforms to take down accounts that were advertising fraudulent broker services. The collaborative effort resulted in a total of 62 Facebook, TikTok and Instagram accounts, with a collective total follower count of around 162,600, put forward for removal.

Finally, to coincide with the period of action, IFED ran awareness messaging on social media, educating the public on how they can protect themselves against ‘ghost brokers’.

Mark Allen, ABI Head of Fraud and Financial Crime, said:

"No one wants to fall foul of the fraudsters, especially at a time when household budgets are very tight. And IFED’s targeted action is a powerful way to keep the fraudsters on their toes. ‘Ghost brokers’ hide in plain sight on social media, set to catch people unaware with deals that look too good to be true. Stay vigilant when looking for insurance and contact companies directly to find the right deal for you, or check the Financial Services Register to verify broker deals."

 Who do ‘ghost brokers’ target?

‘Ghost brokers’ tend to target vulnerable communities, including members of non-English speaking communities who may not have full knowledge of UK insurance and laws, as well as young people looking for cheaper insurance deals.

How can I protect myself against this type of fraud?

• 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. 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.

What could happen if I drive without valid insurance?

As policies sold by ‘ghost brokers’ are either invalid, non-existent or fraudulent, this means that the driver is technically uninsured, meaning that they could face:

• £300 fixed penalty notice;
• six points on driving licence; or
• vehicle being seized and crushed.

How should I report a ‘ghost broker’?
If you think that you’ve been a victim of a ‘ghost broker’, you can report your concerns to Action Fraud at actionfraud.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