Ghost broking activity continues to rise – IFB

Reported cases of customers being tricked into purchasing fake motor insurance policies by ghost brokers rose by 6% year-on-year in 2023, according to the latest data from the Insurance Fraud Bureau (IFB). 

Ghost broking refers to a type of crime whereby fraudsters imitate insurance brokers in order to sell fraudulent insurance policies. Criminals often utilise social media channels to lure in customers with highly discounted, but ultimately fraudulent, rates for insurance. 

The rise in ghost broking activity came alongside news from YouGov, which found that one in five 18-24 year olds were now using social media to search for motor insurance, while IFB findings showed that social media platforms TikTok and Snapchat were the most common sites where ghost brokers found victims. 

Ursula Jallow, director at the IFB, commented: “More and more young people are turning to social media to find deals and save money. These deals are often not what they say they are and leave victims seriously out of pocket and at risk of getting themselves into trouble with the police for driving without insurance.”

Perfect targets

Commenting on the new data, Tom Hill, the City of London Police’s detective chief inspector of the Insurance Fraud Enforcement Department (Ifed), said: ”Factors such as the cost of living and the low paid part-time jobs unfortunately make students and young adults the perfect target for ghost brokers.

“As they can often use social media to advertise enticing offers, these criminals can end up having access to a wide pool of victims.”

Mark Allen, the ABI’s head of fraud and financial crime, added: ”As individuals and households maintain tight budgets to cope with the cost of living, no one wants to fall foul of fraudsters.

”[Customers should be aware that] the golden rule is to never act in haste – if a deal seems to good to be true, then it probably is.”