In the latest security news, the Insurance Fraud Bureau (IFB) survey by pollsters YouGov has found that one in three 18 to 24-year-olds have seen a suspicious-looking advert for car insurance on social media.
While young people may be more susceptible to an ad that looks too good to be true, the IFB says that all age groups are affected, with one in five people overall having seen a suspicious advert. Despite this, a worrying two thirds of people surveyed admitted they wouldn’t even check if their seller had a website before buying car insurance. IFB warns that people need to beware of ghost broking scammers who use fake adverts to pose as seemingly legitimate sellers on social media, offering cheap car insurance before disappearing, leaving their victims out of pocket and often uninsured.
Young people in particular should be cautious as they could be targeted due to their typically higher insurance premiums and lower disposable income, meaning they may be more likely to buy these tempting policies. The IFB says ghost broking is on the rise, with them seeing a significant increase in investigations since 2015. In only a few hours, an IFB researcher found 50 suspicious-looking social media adverts worthy of further checks and the IFB is now working to get these removed.
Never Heard Of It
With the news that 95% of people surveyed having never heard the term ‘ghost broking’, the IFB is concerned that a lack awareness about the scam could mean that people are using their saving money to buy car insurance that is not worth the paper it’s written on. The survey found that one in three didn’t even know how serious the consequences of having fake or falsified car insurance could be.
This could include a £300 fine, six points on your licence, your car being seized and maybe crushed, a possible court appearance, plus liability for the associated costs if you were involved in an accident. With this news, Ben Fletcher, Director of the IFB said: “Although legitimate insurers and brokers advertise on social media, it’s essential that people stay savvy to the differences between what’s genuine and what’s fake. Enticing offers may seem like an easy way to save money on your car insurance, but the reality is that by cutting corners and not checking if the source is genuine, people are risking their hard earned cash.”
