Young drivers have been warned they could lose thousands of pounds by buying fake car insurance policies amid a rise in ‘ghost broking’ cases.
Aviva has detected an increasing number of motorists being conned into handing over their coin to fraudsters who pose as middle-men for well-known insurance companies.
Young motorists are losing £2,000 each on average when they buy fake policies, according to research by the insurance giant.
This includes the average premium paid (£1,700) and extra fees (£300) charged by ghost brokers selling fraudulent policies.
Aviva said ghost broking detections are running higher this year than in 2024 – and those aged 17 to 25 are the primary target.
Many scams start on social media and Aviva said it has identified a sharp rise in fraudsters using fake, professional-looking websites that impersonate legitimate insurers.
Detective Chief Inspector Nik Jethwa, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), told Metro: ‘Ghost brokers prey on trust and vulnerability, leaving victims financially exposed and legally unprotected – often facing the same penalties as uninsured drivers.
‘These criminals use forged documents, fake websites and social media ads to lure people into buying bogus policies.
‘To stay safe, always buy insurance directly from a trusted provider or through a broker registered with the British Insurance Brokers’ Association or the Financial Conduct Authority (FCA).
‘Be cautious of deals offered via messaging apps or social media and never pay in cash or via bank transfer without verifying the source.
‘If you’re unsure whether your vehicle is properly insured, you can check its status instantly using the Motor Insurance Database via Navigate.’
Ghost broking victims can be liable for costs for any injuries or damage caused while driving without cover.
They could also face having their car seized by police and court action.
According to Aviva, people could also end up being victims of identity fraud if tricksters sell on their personal information.
Owen Morris, of Aviva, said: ‘Ghost broking is a fast-growing criminal enterprise that targets young drivers on social media sites.
‘These fraudsters exploit social media to sell worthless insurance, leaving victims thousands of pounds out of pocket, driving without insurance and at risk of prosecution.
‘They could also potentially be victims of identity or banking frauds in the future.
‘The scale of the problem is concerning – and it’s getting worse.”
‘Our message to young drivers is simple. Before buying insurance on social media, always check the seller is genuine before you pay.’
Aviva said that to avoid falling victim to ghost brokers, young drivers should be cautious about anyone selling insurance on social media and verify who they are dealing with.
They should contact insurers directly and check the Financial Services Register to ensure they are legitimate.
They should also check registrations with the British Insurance Brokers’ Association (Biba) and the Financial Conduct Authority.
Biba can help young drivers, who often pay more for their policies, to find legitimate insurance.
Anyone who suspects they have been a victim of ghost broking or other fraud should report their concerns to the police.
What is ghost broking?
According to the Insurance Fraud Bureau (IFB), ghost brokers are fraudsters who pretend to be real insurance brokers.
They promote bogus deals through social media and sometimes on fake insurance company websites.
They then encourage communications through encrypted messaging software like WhatsApp to keep illegal dealings in private.
Young drivers are often exploited due to the higher costs they face and lack of experience when it comes to buying insurance.
The fraudsters market themselves towards young social media users, promising to offer the lowest rate on the market, even if the driver has convictions.
They also offer up-front quotes, despite the fact insurance is meant to be priced based on the risk of the individual.
The IFB said the ghost broking has grown by more than 50% in the past two years – and that they are increasingly advertising bogus deals on Facebook, Instagram, Snapchat and TikTok.
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