Many young men are becoming victims to fraudsters selling fake car insurance as reported by the police. For the first eight months of 2021, the national fraud and cyber-crime centre had more than 350 reports of ‘ghost broking’ and it appears that young people between the ages of 17 – 29 are the age group most likely to fall victim, particularly cash-strapped students. More than 60% of the reports were from men and of the 17 to 29 year olds 62% were from men. The City of London Police’s Insurance Fraud Enforcement Department (IFED) reminds young people to be wary of ghost brokers.
The reported losses to ghost brokers for all age groups is a massive £786,700 so far this year, with the average victim losing around £2,250. Fraudsters will offer cheaper insurance premiums, often via social media or by word-of-mouth. They are posing as brokers for well-known insurance companies and claim that they can offer legitimate car insurance at a much cheaper price. insurance documents may be forged or the details may be falsified to artificially bring the price down. A genuine policy may even be taken out but then cancelled later. It only becomes apparent that the policy is not genuine when they try to make a claim or are stopped by police.
The City of London Police’s IFED have said that many students rely on their cars to travel to and from university or around where they study, and so may have recently restarted or renewed their insurance after the summer break.
With the high cost of insurance premiums and a student money often being tight they ae a prime target for ghost brokers. It is important to check that the policy they have signed up for is legitimate. The offer of a cheap deal may be enticing but if it is fraudulent it will end up costing more in the form of a fine, points on a driving licence an even the car being seized and crushed.
It really is so important to check the credentials of the agency / company who is selling the insurance as a cheap fraudulent policy could end in heartbreak.