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25th July 2024The Rise of Ghost Broking
Crimestoppers’ trusted partner, the Insurance Fraud Bureau, has launched a campaign raising awareness of the rise of dangerous so-called ‘Brokers’ targeting young drivers on social media with Ghost Broking.
What is Ghost Broking?
‘Ghost Broking‘ is the name given to a tactic used by fraudsters who pose as genuine insurance brokers and sell fraudulent insurance policies. They typically lure in their victims on social media, on channels such as Facebook, Instagram, TikTok and Snapchat where they offer ‘discounted’ but fraudulent insurance policies.
Did you know?
UK insurers reported a 6% rise in Ghost Broking activity last year and this increase is expected to continue as financial pressures loom.
Advice to stay safe
Know the signs:
- The price is much better than you can find anywhere else.
- The seller only wants to communicate via social media or a messaging app (e.g. Whatsapp or Snapchat).
- The advert looks unprofessional and is poorly spelt.
- The seller is vague about how they’re getting you such a good price.
- The seller doesn’t have a legitimate website, UK landline number or address.
- The seller offers insurance at an upfront cost, despite insurance being meant to be priced based on the risk of the individual.
Do your checks:
- If buying through a broker, check they’re registered with British Insurance Brokers’ Association (BIBA).
- If buying directly through an insurer, check they’re a member of Motor Insurers’ Bureau (MIB).
- Whether broker or insurer, check they’re registered with the Financial Conduct Authority (FCA). If they’re not, it’s best to avoid them.
You can report any Ghost Broking activity to CheatLine online or by calling 0800 422 0421. Reporting fraud helps them shut down their operations and keep others from falling for their nefarious scams.