The Insurance Fraud Bureau (IFB) has reported a 52% rise in ghost broker scams in the last two years, with young drivers the primary targets.
Ghost brokers sell fake insurance policies to drivers. These are often much cheaper than legitimate polices, with fraudsters increasingly using social media to target victims.
Although average motor insurance premiums have fallen 17% in a year, according to Confused.com, young drivers are still paying exorbitant prices with the average policy for an 18-year-old recorded at £2,434 and £2,258 for a 17-year-old. This means they are particularly vulnerable to ghost brokers.
The IFB detected 320 ghost broker networks operating in the UK in 2022, but that rose to 435 and 485 in 2023 and 2024 respectively. This represents an increase of 52% in just two years.
Impact of ghost broker scams
Ursula Jallow, IFB director, said: “New drivers are caught out by ghost brokers because they face higher premiums and have had less experience in purchasing insurance policies for themselves, which unfortunately means they are more likely to be attracted to car insurance deals that are too good to be true.
“The impact is devastating. We’ve seen victims lose thousands of pounds, have their identities stolen, their confidence and self-esteem shattered, and, in some cases, they have even had their car seized for driving uninsured.
“It’s really important that we spread the word to help protect young drivers from ghost brokers.”
