Car insurance frauds by ghost brokers can cost drivers up to £2,000, according to ‘telltale signals.’
NEW WARNINGS have been issued to drivers about the potential of ‘ghost broking,’ a type of auto insurance fraud that may cost victims more than £2,000.
Ghost brokers act as middlemen for well-known insurance companies, claiming to be able to provide drivers with authentic auto insurance at a much lower cost.
Between January and August 2021, Action Fraud, the national fraud and cyber crime centre, received 351 reports of ghost broking, according to new numbers.
In this time period, the recorded losses for all age groups total £786,700.
The typical victim loses roughly £2,250 as a result of the ghost broker’s deception.
Scammers utilize a range of ways to provide a buyer with an appealing deal, such as fabricating insurance paperwork or falsifying your personal information to reduce the price.
They may even take out a legitimate policy on your behalf, only to cancel it shortly after.
Many people are unaware that they do not have valid insurance until they are stopped by the police or submit a claim.
The study also discovered that cash-strapped young people were the most vulnerable, with fraudsters focusing on those aged 17 to 29.
Gareth Shaw, the Head of Money at Which?, discussed how drivers may prevent becoming victims of fraud.
“At Which?, we’ve heard dozens of cases from people who have been defrauded out of hundreds of pounds or discovered that some piece of their identity has been weaved into a stranger’s auto insurance policy,” he said.
“If they use price comparison sites for quotations, don’t have a website or phone number you can call, and don’t appear on the Financial Services Register on the FCA’s website, you may be chatting with a ghost broker.”
“It’s possible that a fraudster has utilized part of your information if you receive strange correspondence from an insurer about a policy you don’t possess.”
“Don’t be alarmed, but notify the insurer and Action Fraud as soon as possible.”
“We’d also advise keeping an eye on your account and reviewing your credit record for any unusual searches.”
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