New drivers hit by ghost broker scam
CAR COVER CROOKS DUPE RECORD VICTIMS
RE RECORD numbers of young drivers are being duped into buying fake insurance online.
Ghost broking scams that advertise on Instagram and other websites have soared in the past three years.
Victims lose hundreds of pounds and can end up driving illegally without cover.
Adverts offer insurance for as little as £100 a year on social media sites, student websites or moneysaving forums.
Fraudsters falsify drivers’ names to bring the price down or take out a genuine policy before cancelling and claiming the refund plus the victim’s cash. The Insurance Fraud Bureau is handing over 70 investigations – up from 11 new cases in 2015.
Its head of intelligence Stephen Dalton said: “Young drivers who pay higher premiums are often the target.
“More than a third of young people we surveyed said they’ve seen a suspicious ad for insurance on social media.”
One ghost broker, Abdul Hakim, 27, of Oldham, Greater Manchester, was jailed for three years at Bradford crown court in April for duping 21 people.
Drivers are warned to beware if a seller provides only a mobile number or email.
Brokers can be checked out on websites register.fca.org.uk and biba.org.uk.