UK Young Drivers Warned of Ghost Broking Insurance Scams

Motorists aged 17 to 25 are being warned about ghost broking scams after a survey found that 49 percent of young drivers have purchased insurance through social media or messaging apps. Around 39 percent of those surveyed said they would not feel confident spotting the signs of a fake policy, according to the Financial Conduct Authority.

Ghost brokers are criminals who pose as legitimate brokers and sell bogus insurance policies through social media and messaging platforms. They often target young people and students who have less experience buying insurance. Young motorists typically pay higher premiums and may be drawn to offers that appear cheaper than standard rates.

The policies are either entirely fake or contain falsified details that artificially lower the price. Criminals may also cancel the policy shortly after purchase, leaving the buyer unknowingly uninsured.

Driving without valid insurance exposes buyers to prosecution, fines, and possible seizure of their vehicle. More than two-fifths, or 45 percent, of young people surveyed said they generally trust products or services bought through social media. One in seven, or 15 percent, said they find it difficult to fit insurance into their monthly budget.

The Financial Conduct Authority is urging young drivers to avoid offers that sound too good to be true and to steer clear of deals available only through social media and messaging platforms.

Genuine sellers should have a legitimate website, phone number, and address. Buyers are advised to check that a firm’s contact details match those listed on the FCA Firm Checker tool on its website.

““Tight budgets make cheap offers tempting – and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist. ” — Graeme Reynolds, director of insurance at the FCA Kantar surveyed 1,000 drivers aged 17 to 25 across the UK in April and May. Chris Bose, director of general insurance at the Association of British Insurers, said ghost broking leaves victims uninsured, out of pocket, and potentially facing serious legal and financial consequences. He added that motorists should avoid offers advertised solely on social media, contact insurers directly to verify legitimacy, and use the FCA Firm Checker. Bose said the golden rule is to never act in haste, because if a deal seems too good to be true, it probably is.”