New ghost broking network reported every day
New data from the Insurance Fraud Bureau has revealed that at least one new ghost broking network is uncovered every day.
Ghost brokers pose as insurance brokers and sell fake cover through unrealistically priced deals, often targeting young drivers on social media.
The IFB has reported that 596 suspected organised ghost broking networks were reported to the IFB in the last year, with each able to reach thousands of people through social media and community groups, using multiple accounts, targeted posts and fake testimonials.
It has now partnered with the Association of British Insurers, Chartered Insurance Institute, City of London Police’s Insurance Fraud Enforcement Department and the FCA to launch a national campaign called Ghost Broking: See Through the Scam to protect drivers.
Ursula Jallow, director at the IFB, said: “Ghost brokers deceive people with less experience of buying insurance, which includes young and first-time drivers, and people who have recently moved to the UK. Victims are left out of pocket and risk their vehicle being seized for being uninsured.
“With new ghost broking scams emerging daily, awareness has never been more important. The industry has come together to stand against fraud with a national campaign to tackle the issue. For the first time, multilingual information is also being provided to help raise awareness with people who speak English as a second language
“We urge anyone with evidence of ghost broking to report it to our confidential CheatLine so we can work with insurers and police to stop these fraudsters.”
