Ghost broking on the rise

New research has found that ghost broking on the rise. Ghost broking is the sale of sale but fake car insurance, or the sale of genuine policies but with various details changed, making the policy invalid.

This is according to exclusive data for This is Money from Which?. It revealed that 50 of its members responded with examples suggestive of insurance fraud, with many in rural or suburban areas.

Stephen Dalton, head of Intelligence and Investigations at the Insurance Fraud Bureau, told Which? that ghost broking accounted for a third of its 65 ongoing fraud investigations at the end of 2019.

Meanwhile, last year alone, Aviva nullified over 3,100 policies and quotes that were found to be linked to ghost broking. It is currently investigating a further 4,000 cases.

The Metropolitan Police reporting that such crimes cost victims an average of £1,209 each and motorists could also find themselves slapped with a fine, receive points on their licence and be charged more for their insurance in future as a result.

Jenny Ross, Which? money editor, said: “Ghost-broking is an increasingly prevalent car insurance scam that can lead to serious consequences, including drivers being hit with fines, penalty points or even disqualification.

“Fraudsters are using sophisticated tactics online to trick vulnerable customers into thinking that they’re buying a legitimate policy, when in fact it’s bogus.

“Consumers should watch out for warning signs that the insurance may not be genuine, including suspiciously low prices, and always check that the provider is regulated by the Financial Conduct Authority.”