Ghost brokers promote false insurance policies to drivers, manipulate data given to real insurance coverage corporations, or take out insurance coverage and cancel it immediately. This leaves individuals with out legitimate automotive insurance coverage, which is unlawful.
Wayne Simpson misplaced over £500 to a ghost dealer.
He was searching for low-cost automotive insurance coverage and noticed an commercial on social media for a deal which was half the worth of different corporations.
He purchased the coverage, and it was solely when he tried to make a declare after a crash that he found the reality: “We referred to as up Aviva and so they informed me there wasn’t a coverage taken out in my identify and that the quantity we had given them was not a quantity they’d use.
“That’s when the dust settles, and you realise it’s been a scam.”
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Wayne Simpson
Aviva was not at fault. Victims are lured in by genuine-looking web sites and are despatched professional-looking invoices.
Mr Simpson acquired insurance coverage paperwork that seemed so actual, they even fooled the police officer on the accident.
“She said, ‘Your car’s not popping up as insured’. Straight away I went to my glove box, pulled the insurance documents, showed her the documents and she read through it and said, ‘That’s totally fine’,” he stated.
Police say younger drivers are most probably to be focused by ghost brokers, partly as a result of they’re usually seeking to cut back their insurance coverage prices.
In response to the RAC, virtually half of younger drivers stated insurance coverage prices had been a prime concern.
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Detective Superintendent Tom Hill
Detective Superintendent Tom Hill, head of the Metropolis of London Police’s Insurance coverage Fraud Enforcement Division, stated social media is behind this enhance: “There are limited barriers to entry for social media accounts to be set up so people can take out car insurance and spread the word quite widely.
“Do your analysis and ensure you’re coping with a real dealer or real insurance coverage firm. If the dialog has been moved on to WhatsApp, for instance, alarm bells must be ringing”.
In 2024, victims of ghost broking misplaced a median of £2,206.
Victims lose cash to the rip-off after which need to pay further prices to restore their vehicles after an accident. They may additionally face prison fees, a superb or licence factors if discovered to be driving and not using a legitimate licence.
