The truth about ghost brokers

It’s bad enough getting ghosted in today’s complex world, whether that be through dating or while waiting to hear back from a job application, but getting ghosted by a fake insurance company can be even worse.

In this post, we’ll explain how ghost brokers’ motor insurance scams prey on unsuspecting drivers. We’ll share how to spot these scams and what you should do when you see them.

What is ghost broking?

The Insurance Fraud Bureau offers the following definition of ghost brokers:

“A “Ghost Broker” is a term used to describe a fraudster who pretends to be a genuine Insurance Broker in order to sell fraudulent car insurance. Ghost broking scams have risen in recent years and typically take place on social media, but they can also be facilitated through word of mouth or local businesses.”

These Illegal Insurance Intermediaries, whether individuals or organisations, sell policies that are fake or invalid. These can range from falsified documents to amended genuine policies or even using false information when buying a policy from a legitimate company.

Why is it called ghost broking?

Taking your money and disappearing… Does that sound familiar?

Ghost brokers sell their fake insurance policies at incredibly low prices, often online or via text, WhatsApp, or social media channels. If the price feels like it’s too good to be true, then it probably is. If you feel uncomfortable at any point, you should back out. Don’t give your money to them.

Don’t commit to a ghost broker…

These scammers rely on trust and honesty. They can see what you’re looking for and may sweet talk you into accepting something that you definitely don’t want (or need).

Once they have your money, they may disappear without trace and you’ll be left out of pocket, potentially facing the following penalties:

• Policy cancellation with no cover deemed to be in effect.
• Your car may be stopped by the police resulting in a driving without valid insurance conviction. This could lead to:
• Fines of up to £300 and 6 penalty points.
• The car being seized, impounded, or crushed.
• Having to pay out of pocket for any accident damage.
• Having to buy a new policy with little chance of a refund from the Ghost Broker.
• You could be liable for any injuries or damage caused in an accident while the false policy was in place.
• You may lose some of your personal data.

How can I avoid a ghost broker?

We all want to avoid being scammed and taken advantage of. The following are the tell-tale signs of a ghost broker in action:

• The company is not regulated by the Financial Conduct Authority.
• Prices are too good to be true.
• The broker tries to sell to you direct via certain channels e.g. they may only appear WhatsApp or a certain social media channel.
• When you receive the policy, it is filled with errors e.g. the company name is incorrect or your name is spelt wrong.
• They go for the hard sell.

What are the best ways to protect against car insurance scams?

• Check the broker’s credentials with the Financial Conduct Authority (FCA).
• Check the insurer’s details with The Motor Insurance Database (MID). Find out more in our What is AskMID blog post.
• Buy your insurance directly from a trusted broker. If you’re looking for temporary car insurance, trust Tempcover. We’re authorised & regulated by the Financial Conduct Authority No: 746985 and registered in England, Company No: 9923259.
• If you have concerns or something doesn’t seem right, trust your instincts.

What to do if you’ve been ghosted by a fake broker?

If you suspect you’ve been a victim of a ghost broker, you can report it to Action Fraud by calling 0300 123 2040. You should also contact your bank if you’ve made a payment and your insurer to arrange a new, valid policy asap.

You can also contact Tempcover at [email protected]. If you believe a ghost broker is acting as Tempcover, please provide the following information:

• Which website or social media you purchased the policy from.
• The name and contact details of the person you purchased the policy from.
• Screenshots of any documents or messages relating to your policy.
• Information of any bank account you may have sent money to.

This will be shared with Tempcover’s fraud team who will investigate, and where possible, work with industry organisations to identify and investigate the fraudster.

Don’t let a ghost broker scam you…

At Tempcover, we are committed to helping our customers avoid scams. You can find detailed guidance on recognising and avoiding fraudulent activity in our help centre. We encourage you to reach out if you have any concerns or require some assistance.

Don’t let yourself become the victim of a ghost broker. Stay safe and insured with a trusted provider.