Ghost broking on the rise, warns FCA
The Financial Conduct Authority has reporting rising ghost broking instances and warned against the risks of buying car insurance through social media.
Its research has revealed that half of drivers aged 16 to 25 have brought car insurance over social media or messaging apps.
Often the policies offered are suspiciously cheap, but many are fake, meaning young motorists are on the road without insurance and risk having their vehicles seized.
The FCA said legitimate insurance brokers should have a website, phone number and address, and is urging young drivers to confirm the broker is authorised via its Firm Checker before taking out a new policy.
Graeme Reynolds, director of insurance at the FCA, said:
“Tight budgets make cheap offers tempting and scammers take advantage of that. But driving uninsured could cost you far more than any premium. Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy.”
