No legitimate broker will sell customers motor insurance via the likes of Snapchat, and the City of London Police is making sure everyone gets the memo.
With today’s launch of its national awareness campaign called “Steer Clear of Fraud,” the police force’s Insurance Fraud Enforcement Department (IFED) is sending a stern warning against ghost brokers who are jeopardising motorists by letting them think they are adequately covered by what are actually fake policies. It is feared that many are currently driving without valid insurance.
Nearly 900 ghost broking cases were referred to Action Fraud, the national fraud and cyber reporting centre hosted by the City of London Police, from November 2014 to October 2017 – over 400 of which resulted in action being taken against the offenders following IFED’s probes. This type of fraud cost individuals and organisations alike a reported £631,000 during the period.
“It is essential that we raise awareness about the issue of ghost broking to stop innocent victims being targeted and to educate those who may consider buying insurance from a disreputable source,” noted Ben Fletcher, director of the Insurance Fraud Bureau. “We work closely with police and insurers to track all those involved in ghost broking scams in order to bring about charges for those guilty parties.”
IFED said ghost brokers typically carry out the scam either by forging insurance documents, falsifying the driver’s details, or taking out a genuine policy but cancelling it soon thereafter to claim the refund as well as the victim’s money. The police unit added that likely targets are men aged 20-29, with social media being the most common method to make initial contact.
As part of the awareness campaign, leaflets on ghost broking will be available for free through IFED’s dedicated ghost broking website. The department will also use the hashtag #SteerClearOfFraud to inform netizens about how they can protect themselves.
“Be wary of ghost brokers using only mobile phone or email as a way of contact,” warned IFED. “Ghost brokers have even been reported using messaging apps, including WhatsApp, Snapchat, and Facebook. Fraudsters don’t want to be traced after they’ve taken your money.”
When in doubt, the police advise turning to the Financial Conduct Authority or the British Insurance Brokers’ Association for a list of authorised insurance brokers. Prospective policyholders may also contact the insurance company directly to verify the broker’s details.
“As well as the personal harm experienced by victims, ghost brokers also cause financial harm to the insurance industry, driving up the cost of insurance premiums for all motorists,” said detective chief inspector Andy Fyfe, head of IFED. “While an offer of cheap car insurance may seem tempting, falling victim to ghost broking will end up costing you far more in the long run – both in terms of money and your licence.”
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