Recently, ‘ghost brokering’ fake insurance policies has risen dramatically in the UK. It has surprisingly become one of the latest frauds in the field of car insurance.
According to anti-scam website Action Fraud, around 20,000 British motorists have already committed of this new form of car insurance crime, so what is ghost brokering and how can you avoid it?
Ghost insurance brokers target drivers looking for cheap car insurance—these criminals will often act as insurance intermediaries offering to get you the best deal on your car cover.
Cash-strapped young motorists are generally the target market, with ghost brokers often using social media posts to advertise their services.
Once contact has been made with the fake company and the unknowing punter has handed over their details, the ghost broker will haggle with an insurance company and get a cheap quote.
This is usually way under market rate and too good to be true, because the middlemen have changed the proposer’s details to reduce their premium.
Following the customer’s acceptance and the payment for the policy, these fake insurance brokers will then send out the policy documents.
But even though the motorist may have paid for their insurance, they could be left without cover in the event of a crash.
