Court orders fake car insurance fraudsters to repay £376,000

A court has mandated two men to pay back a total of £376,000 following their conviction in a ghost broking scheme.

The Inner London Crown Court granted the confiscation orders on 7 March 2025 against Ikram Rafique, 38, of Romford and his cousin Mohammad Hamad, 32, of Ilford, for defrauding over 900 motorists by selling invalid insurance policies.

Rafique operated as a ghost broker, charging motorists fees of up to £300 to set up low-cost insurance policies. Through fraudulent tactics, he provided false information to lower motor premiums, rendering the policies invalid. Hamad was involved in laundering the funds obtained by Rafique.

A ghost broker is an individual or company that sells fake or invalid insurance policies at a cheaper price, leaving the buyer without legitimate insurance.

In recent years, the rise of ghost broking scams has put pressure on motor insurance affordability in the UK.

In March 2024, a Tempcover report revealed that social media car insurance scams nearly doubled, resulting in victims losing approximately £200,000.

This latest conviction has highlighted the growing concern surrounding ghost broking, especially as consumers face rising insurance premiums and may be tempted to seek cheaper options.

Alan Yau, detective sergeant at the City of London Police’s Insurance Fraud Enforcement Department (Ifed), stressed the agency’s commitment to holding fraudsters accountable.

He stated: “Ifed will use its full suite of options to make sure that fraudsters don’t benefit from their dishonest actions.

”Selling fake insurance doesn’t pay. Should Rafique and Hamad have available assets in the future, we will make every effort to recover the outstanding amounts.”

Sentencing  

As a result of the Ifed investigation and subsequent trial, Rafique was convicted of acting as an unlicensed broker and money laundering, resulting in a suspended sentence of two years and 220 hours of unpaid work.

Hamad received a 15-month suspended sentence for his role in the laundering activities and was similarly ordered to complete 180 hours of unpaid work.

Rafique’s fraudulent activities occurred between January 2016 and December 2018. He received payments through a bank account under the name Qiuhong Chen, amounting to £302,036 over 24 months.

The Ifed investigation revealed that he transferred these funds to various accounts and a money service bureau, laundering the proceeds outside the UK.

The court’s confiscation orders included a £250,000 sum against Rafique, who must pay £39,048 of his available assets within three months or face 12 months in prison.

Hamad was ordered to repay £126,608 and must hand over £15,699 of his assets in the same time frame, or he will serve nine months in prison.