Motorists are being warned to watch out for insurance fraud, as the number of fake policies for sale is soaring.
So-called ‘ghost brokers’ pose as online insurance dealers to sell fake policies to motorists.
They typically lure in victims through social media platforms Facebook and Instagram, and tempt them with the promise of low premiums.
Insurance scam: So-called ghost brokers typically lure in victims through social media platforms such as Facebook and Instagram, and tempt them with the promise of low premiums
More than 55,000 fraudulent motor insurance applications sold by ghost brokers have been referred to the police by insurance provider LV over the past year, according to the Insurance Fraud Bureau (IFB). That is more than double the number rooted out in the previous 12 months.
You can check to see if an insurer or broker is regulated by the Financial Conduct Authority, so you don’t get caught out with a worthless policy. Go to: register.fca.org.uk.
Ben Fletcher, head of financial crime at LV, has called for tougher regulation across social media to further protect people from being approached by ghost brokers or shown their adverts.
There are common red flags to look out for when buying a policy. As usual, if the price is too good to be true, it probably is.
Be wary if a broker asks you to pay a large admin fee into a separate bank account. And LV warns you should never meet people offering to deliver your insurance certificate in a car park for a cash payment.
