If an offer looks too good to be true, then it probably is, warn police. The City of London Police’s Insurance Fraud Enforcement Department (IFED) has launched a campaign to raise awareness of fraudsters selling fake car insurance.
IFED is encouraging drivers to be wary of heavily discounted prices on the internet or cheap prices they’re offered directly for car insurance, as they may well be ghost brokers. Police believe ghost broking is under-reported due to the way ghost brokers deceive motorists into thinking they have legitimate insurance, when in fact it’s worthless. Ghost broking is the name given to a tactic used by fraudsters who sell fraudulent car insurance. They typically forge insurance documents, falsify the driver’s details to bring the price down or take out a genuine policy, before cancelling it soon after and claiming the refund plus the victim’s money.
Detective Chief Inspector Andy Fyfe, Head of IFED, said: “Ghost brokers trick unsuspecting victims with offers of heavily discounted car insurance, leaving them with a policy that isn’t worth the paper it’s written on and open to the severe harm that comes with driving without valid insurance. Being able to drive is vital for a lot people, whether it be to get to work or pick up their children from school or nursery, so if they fall victim to a ghost broker it could not only impact on them financially but also seriously affect their day to day life and make things very difficult.
“As well as the personal harm experienced by victims, ghost brokers also cause financial harm to the insurance industry, driving up the cost of insurance premiums for all motorists. While an offer of cheap car insurance may seem tempting, falling victim to ghost broking will end up costing you far more in the long run – both in terms of money and your licence.”
What to do
If you have or think you have been a victim of ghost broking, get in touch with IFED via phone on 0207 164 8200 or email at [email protected]. Alternatively, report it to Action Fraud by calling 0300 123 2040.
You can also report to the Insurance Fraud Bureau’s Cheatline by completing their online form or by calling anonymously and in confidence on 0800 422 0421.
