Young Drivers Targeted by Fake Insurance Scams
Young motorists across the UK are being warned about a sharp rise in 'ghost broking', a sophisticated insurance fraud that is leaving victims thousands of pounds out of pocket. According to research by the insurance giant Aviva, young drivers are losing an average of £2,000 each after being tricked into buying fraudulent car insurance policies.
How the 'Ghost Broking' Scam Operates
Fraudsters are increasingly posing as middle-men for well-known insurance companies, using fake, professional-looking websites and social media platforms to appear legitimate. Aviva has detected a higher number of these cases in 2025 compared to 2024, with those aged 17 to 25 being the primary targets.
The average loss of £2,000 is comprised of a typical premium payment of £1,700 and extra fees of around £300 charged by the ghost brokers. Detective Chief Inspector Nik Jethwa from the City of London Police’s Insurance Fraud Enforcement Department (IFED) stated, "Ghost brokers prey on trust and vulnerability, leaving victims financially exposed and legally unprotected – often facing the same penalties as uninsured drivers."
The Consequences and How to Protect Yourself
Victims of ghost broking face severe repercussions. They can be held liable for all costs from any accidents, have their car seized by police, and face court action. Furthermore, Aviva warns that victims could also become targets of identity fraud if their personal information is sold on by the tricksters.
Owen Morris of Aviva commented, "Ghost broking is a fast-growing criminal enterprise that targets young drivers on social media sites. The scale of the problem is concerning – and it’s getting worse."
To avoid falling victim, authorities advise young drivers to:
- Be extremely cautious of anyone selling insurance on social media.
- Always verify the seller is genuine by contacting insurers directly.
- Check the Financial Services Register to ensure legitimacy.
- Confirm registrations with the British Insurance Brokers’ Association (Biba) and the Financial Conduct Authority (FCA).
Anyone who suspects they have been targeted by a ghost broker is urged to report their concerns to the police immediately.
