DRIVERS have been warned about an online insurance scam that could cost them a fortune.
So called ‘ghost brokers’ are offering fake policies at reduced prices, while posing as genuine providers.
The Insurance Fraud Bureau (IFB) often deals with cases such as these, and it claims more than 55,000 fraudulent insurance applications have been uncovered in the last year – with thousands connected to ghost brokers.
One of the UK’s leading car insurers, LV General Insurance, has conducted its own investigation – showing a 31% increase in policy fraud in the first quarter of 2023 compared to 2022, Auto Express reports.
And, of course, this also means that many drivers will be unknowingly driving without the proper cover.
Jon Radford, head of investigations at IFB, said "The significant financial pressure that so many people are facing is sadly providing fertile ground for ghost brokers.
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“These shameless fraudsters prey on the most financially desperate people, luring them in with too-good-to-be true car insurance deals on social media which are entirely fake. Not only are victims left hundreds of pounds out of pocket, but they can be stopped by the police and have their car taken away for no insurance.”
How to beat fake insurance scams
LV’s experts have come up with a list of top tips for anyone unsure about a deal they’re being offered.
- If it’s too good to be true, it probably is – don’t be lured by a scammer’s low premiums.
- Be careful how you pay for insurance – anyone asking for admin fee payment into different accounts should raise suspicions.
- Validate any bank accounts that you’re asked to pay money into.
- Don’t exchange cash for insurance certificates in car parks or elsewhere.
- Check the Financial Conduct Authority register to make sure insurers are genuine.
- Take pictures of accident damage, locations and number of people in the other car, so they can’t be exaggerated in claims.
- Check for witnesses or other drivers with dash cam footage to help prove what happened.
- Report ghost broking and insurance fraud on the confidential IFB Cheatline, powered by CrimeStoppers, on 0800 422 0421.
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