Ghost broker who pocketed over £17k in Instagram insurance scam caught

A fraudster who made £17,618 by selling invalid car insurance policies on Instagram has been sentenced.

Wahidullah Usmani was found to be operating as a ghost broker, with him using a fake account to claim that customers could “save up to 60% on every quote”.

The case was referred to the City of London Police’s Insurance Fraud Enforcement Department (Ifed) in January 2021 by LV=General Insurance.

Usmani, 22, of Prayle Grove, Cricklewood, pleaded guilty on 6 June 2024 to fraud by false representation, carrying on a regulated activity when not an authorised person and money laundering. 

Detective sergeant Phil Corcoran, from Ifed, said: “Usmani enticed his victims with the offer of cheap car insurance, but left them with policies that were worth less than the paper they were printed on.

“Ghost brokers like Usmani prioritise their own financial gain above all else. We know that the rising cost of insurance premiums means people are always looking for a cheap deal, but it’s vital to check that you’re buying an insurance policy from a legitimate source.”

The case

Suspicions were first raised when the fraud team at LV= General Insurance identified a motor insurance policy that it felt was fraudulent.

The policyholder told LV= General Insurance that they had bought insurance from a broker who used an Instagram account called @cheap_car_insurance_quotes. According to the account, customers could “save up to 60% on every quote”.

Further enquiries showed that the account was linked to Usmani and that he had taken out another 13 fraudulent motor insurance policies.

In each case, customers paid Usmani up to £250 and he manipulated their details to obtain cheaper quotes.

Officers from Ifed arrested Usmani on 14 April 2021. An examination of a mobile phone seized during a search of his home address confirmed that he operated the @cheap_car_insurance_quotes account.

The @cheap_car_insurance_quotes Instagram account has since been taken down.

Sentence

Ifed’s analysis of Usmani’s bank account revealed that it had received several payments worth a total of £17,618 between February 2020 and January 2021.

Payments worth £2,888 were linked to the 14 policies at LV= General Insurance and another £4,319 was confirmed to be related to further ghost broking activity.

Some 19 additional payments were suspected to be related to ghost broking.

At Inner London Crown Court on 24 July 2024, Usmani was sentenced to 24 months imprisonment, suspended for 24 months.

He must also complete a 15 day rehabilitation activity requirement and pay £1,000 in costs.

Ben Fletcher, director of financial crime at LV= General Insurance and Allianz personal lines business, said: “This is a fantastic result and we’ve worked collaboratively to achieve a great outcome against a ghost broker who was deliberately lying, making money and putting innocent motorists at risk.

“Cases such as this only serve to drive up costs for our genuine customers, which is why we’re committed to uncovering insurance fraud and get the right outcome for all. Unfortunately, if it looks too good to be true it probably is and it’s worth looking out for signs such as insurance documents which may not look genuine.”

Figures

This case comes as figures from the Insurance Fraud Bureau (IFB), published on 24 July 2024, show that the number of people who fell victim to ghost brokers on social media increased by 6% last year.

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.

IFB findings also showed that social media platforms TikTok and Snapchat were the most common sites where ghost brokers found victims. 

Nicola Smith, intelligence and investigations manager at the IFB, said: “Ghost broking is widespread across social media and more people must know the signs, which is why we’re campaigning in partnership with Ifed and the insurance industry to raise awareness of this important issue.”