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April 2021
Ghost Brokers
Typically the scam works in one of two ways:
- Policies are bought from legitimate insurance companies using false information and then doctored before being sold on to unsuspecting customers
- Fake policy documents designed to look like they have been issued by legitimate insurance companies are created and sold on to customers
The consequences of buying a fake policy:
- Your car may be seized by police
- Pay at least £150 to get your car back from the pound
- You’ll pay a fixed penalty notice of £300
- You’ll have to buy valid insurance
- You could be liable for any damage you cause while driving without insurance, which could include compensation if you injure someone
How to beat the fraudsters:
To ensure you aren’t caught out, carry out essential checks before taking out a policy. This includes:
- Checking the party you are dealing with has a legitimate website, a UK phone number and a business address
- If buying through a broker, check they’re registered with British Insurance Brokers’ Association (BIBA)
- Check your insurance advisor is registered with the Financial Conduct Authority (FCA)
- If buying directly through an insurer, check they’re a member of Motor Insurers’ Bureau (MIB)
Source: Insurance Fraud Bureau
