The increase in “ghost broker” scams has prompted experts to advise households to remain vigilant and take steps to avoid falling victim to these increasingly sophisticated fraud schemes.
A recent survey by Quotezone revealed that 79% of respondents were unaware of ghost broking, highlighting the need for greater awareness. Insurance experts have issued a series of tips to help consumers protect themselves from this modern form of fraud.
A ghost broker is a scammer who sells fake or invalid insurance policies, often targeting car insurance. These fraudsters pose as intermediaries for well-known insurance companies, sometimes forging documents or entering false information to lower premium costs.
Ghost brokers frequently advertise through social media, online forums, and word of mouth, claiming to offer significantly cheaper insurance rates.
However, victims may only discover their insurance is invalid when they attempt to make a claim or are stopped by the police, which could result in serious legal and financial repercussions.
As these scams become more prevalent, insurance experts at Quotezone emphasize the importance of awareness and caution to safeguard against potential losses.
UK insurers reported a 6% rise in ghost broking cases last year, further underlining the growing threat.
Greg Wilson (pictured above), founder and CEO of Quotezone.co.uk, noted that ghost brokers employ various methods to appear legitimate, including professional-looking websites, sophisticated advertising strategies, and seemingly official documents.
These scammers often present themselves as agents of reputable insurance companies, adding an extra layer of credibility to their fraudulent activities.
By offering significantly lower premiums, ghost brokers attract budget-conscious shoppers, particularly young drivers, who may not be aware of the risks associated with these seemingly advantageous deals.
As these scams continue to rise, Wilson advises consumers to stay informed and exercise caution when purchasing insurance. He recommends verifying the broker's credentials, being wary of unusually low prices, and contacting the insurer directly if in doubt.
Wilson also warned that driving without valid insurance could result in unlimited fines, penalty points, a driving ban, or even a criminal conviction.
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