Beware Of Ghost Brokers This Halloween

Tue 29th Oct 2019

Drivers seeking a renewal on their car insurance are being warned not to fall victim to the horrors of so-called ‘ghost brokers’ who lurk on social media.

Recent research suggests that the incidences of car insurance scammers are on the rise, with younger drivers in particular targeted on social media with the promise of too-good-to-be-true prices.

Action Fraud, who conducted the study last year found that young drivers are most at risk as they are inexperienced at buying insurance, face higher premiums and are easier to target.

The tactics used by ‘ghost brokers’ include forging insurance documents, creating fake documents to artificially lower the price, or genuinely setting up an insurance policy before cancelling it shortly after - pocketing the premium and the refund from the insurer.

The horror stories continue and now comparison site GoCompare is urging motorists to be more savvy.

Fleur Lewis, head of fraud detection and prevention at GoCompare Car Insurance, said: “Younger, less experienced drivers pay more to insure their cars, which makes them particularly susceptible to adverts for heavily discounted insurance.

“Ghost brokers often operate on social media, especially Facebook and Instagram, where they often use imagery and logos of established insurers to enhance their believability.

“So, we’re warning people to be highly suspicious of cheap insurance advertised on social media or websites where the deal they are being offered looks too good to be true. Drivers can save money by shopping around for cover, but if the insurance offered is significantly less than you could get on a comparison website – be suspicious.”