What is ghost broking in the context of car insurance fraud? There are four strategies for drivers to avoid phony insurance coverage.


CAR insurance scams are on the rise, with Action Fraud warning motorists could be conned out of £2,250 by ghost broking scams. What is ghost broking and how can you avoid it?

Car insurance is vital for all motorists, yet a new scam by the name of ghost broking threatens not only to leave drivers without valid insurance but also out of pocket too. Senior fraud manager, Stephen Adams at Confused.com, spoke with This website to share an insight into ghost broking and how drivers can avoid it.

According to data from Action Fraud, there were 351 reports of ghost broking between January and August 2021.

The majority of these were reported by drivers aged between 17 and 19, with individuals losing an average of £2,250 each as a result, along with the risk of driving with invalid insurance.

Ghost broking is a form of insurance fraud that sees victims unwittingly buying fake motor insurance policies.

Ghost brokers, the people behind the scam, are professional fraudsters who sell forged or invalid discounted insurance policies.

These scams are most usually advertised online, though can also be promoted within local communities.

Most typically, their main selling point is cheap motor insurance.

Mr Adams told This website of the four key signs consumers should look out for when purchasing vehicle insurance and what to do if they suspect their details have been used by a ghost broker.

Reputable companies are always connected to a landline telephone number and should have this listed as the main point of contact on their official website.

Mr Adams said: “Usually, you wouldn’t find a ghost broker with a landline telephone number as they tend to use mobile numbers only, often communicating using WhatsApp or Facebook Messenger.”

These seasoned professionals also know how to sell a deal, and this can be noticeable in their use of language.

Mr Adams explained: “When being sold a deal if you’re having second thoughts, the ghost broker will have ways of redirecting doubt.

“This might involve dazzling you with jargon or confidence.”


Adverts for car insurance deals on social media should be a major red flag, according to the expert.

He explained: “Scammers also tend to advertise on student websites, social media platforms and money-saving platforms, clearly targeting a younger audience.

“There are numerous ads on Instagram from ‘brokers’ promising to secure quality insurance at great prices, some. “Brinkwire Summary News”.


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