Educating the next generation against ghost brokers – Carpenters Group

“Education, education, education.”

I am perhaps showing my age by quoting Tony Blair’s 1996 speech on his priorities for office, but it was certainly what came to my mind when I attended the latest meeting of Insurance Times’ Fraud Charter on 10 December 2024, sponsored by Carpenters Group.

With today’s emphasis on digital processes and tools, it is crucial to equip not only adults, but the emerging generation with knowledge and skills to make informed financial decisions.

While topics such as savings and budgeting often take priority in schools, insurance – and its pitfalls – is often overlooked.

There was a consensus among Fraud Charter delegates that young people today are increasingly becoming targets for fraudsters – particularly ghost brokers. This is where imposters pose as middlemen for well known insurers, claiming they can offer legitimate car insurance at significantly cheaper prices.

The proliferation of social media has expanded ghost brokers’ reach, allowing them to ply their bogus trade and target individuals through everyday handheld devices.

It is crucial that we teach the younger members of society, particularly those looking for their first motor policy, to recognise fraud red flags – such as deals that appear too good to be true – and to understand the consequences of falling foul of them.

Educating young people is imperative and at Carpenters Group, we are committed to playing our part.

In November 2024, we hosted 12 students as part of a three-week introduction to insurance through an insight scheme led by LTSB, a social mobility employment charity focused on breaking barriers for disadvantaged individuals.

By educating students about insurance, both practically and personally, we lay the foundation for long-term equity and understanding.

At the Fraud Charter meeting, I heard that insurers are trying to spread this message too.

I spoke to Fleur Lewis, head of financial crime and operational oversight at Covéa Insurance, who told me that the firm is attending as many university open days as possible, to highlight the risk posed to young people by fraudsters.

I was also reminded of a conversation with my own 10-year-old son, who – upon noticing dash cam footage on my laptop – asked me why anyone would slam their brakes on and cause an accident.

He probably regretted being so inquisitive, as the result was a lecture on motor insurance scams. But, in all seriousness, by taking the initiative to educate our children we can help protect them from financial harm in the future.