Instagram fraudster found guilty after IFED investigation
![](https://www.bodyshopmag.com/wp-content/uploads/2023/01/BSM_cybercrime_datasecurity_malware_hacking_160123.jpg)
A ghost broker has been found guilty of selling invalid car insurance policies worth more than £17,000 on Instagram.
He has been sentenced at Inner London Crown Court to 24 months imprisonment, suspended for 24 months, and must also complete a 15-day rehabilitation activity requirement and pay £1,000 in costs.
A ghost broker is someone who profits from selling fake insurance policies to customers, often over social media, with victims only realising they have been scammed when they try to make a claim.
Detective Sergeant Phil Corcoran, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said: “Wahidullah Usmani enticed his victims with the offer of cheap car insurance, but left them with policies that were worth less than the paper they were printed on.
Ghost brokers like Usmani prioritise their own financial gain above all else. We know that the rising cost of insurance premiums means people are always looking for a cheap deal, but it’s vital to check that you’re buying an insurance policy from a legitimate source.”
Instagram fraudster found guilty
The fraud was first identified by LV= after a policyholder told them they had bought insurance from an Instagram account promising savings of 60% on every motor insurance quote.
Ben Fletcher, director of financial crime at LV=, said: “Cases such as this only serve to drive up costs for our genuine customers, which is why we’re committed to uncovering insurance fraud and get the right outcome for all. Unfortunately, if it looks too good to be true it probably is, and it’s worth looking out for signs such as insurance documents which may not look genuine.”
Nicola Smith, intelligence and investigations manager at the Insurance Fraud Bureau, added:
“Ghost broking is widespread across social media and more people must know the signs, which is why we’re campaigning in partnership with IFED and the insurance industry to raise awareness of this important issue.”