Fake car insurance sales on the increase

The police and insurance industry have joined forces to issue a warning about so-called ‘ghost brokers’ who target the public – in particular young men – with fake motor insurance policies. Crime-fighting charity Crimestoppers is also getting behind the awareness campaign in an effort to stop people falling victim to this type of fraud.

Over 27.6 million vehicles were insured across the UK last year, providing ghost brokers with a huge production line of potential victims seeking the cheapest deals. The fraudsters prey on those paying the highest premiums (new young drivers, mostly men) by offering ‘cheap’ deals online, but also in person by the roadside, in restaurants and cafes and even on university campuses.

Fake policies bought from ghost brokers leave drivers exposed to the dangers of driving without valid insurance. The consequences could include having their car seized by police, along with facing fines, other penalties and getting a criminal record. Uninsured drivers would also pick up the bill for any damage or injuries they cause in a crash.

An animated video warning young motorists about being ripped off by fraudsters selling fake car insurance has been launched today as part of a national awareness raising campaign. It has been jointly produced by the Insurance Fraud Enforcement Department (IFED), the Insurance Fraud Bureau (IFB) and Crimestoppers. 

The IFED is the City of London Police's unit dedicated to tackling insurance fraud nationwide. Its detectives recently arrested 27 suspected ghost brokers in a series of dawn raids across the country. The unit's largest investigation to date – triggered by information from the IFB – resulted in two ghost brokers being jailed for the country’s biggest fake insurance scam. 600 drivers, many of them insuring their first car, were duped into buying worthless policies, making the fraudsters more than £500,000 profit.

The video calls for motorists to use common sense when buying insurance and be wary of deals that seem too good to be true.

The advice website provides more about ghost broking and ways to purchase the cheapest, legitimate motor insurance policies.



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