'Ghost broking': Reports of scammers selling fake car insurance rise by 30% over five years

Reports of "ghost broking", scammers selling fake car insurance, have risen by 30% over the last five years, exclusive data obtained by Sky News reveals.

Ghost brokers sell false policies to drivers, manipulate information given to genuine insurance companies, or take out insurance and cancel it straight away. This leaves people without valid car insurance, which is illegal.

Wayne Simpson lost over £500 to a ghost broker.

He was looking for cheap car insurance and saw an advertisement on social media for a deal which was half the price of other companies.

He bought the policy, and it was only when he tried to make a claim after a crash that he discovered the truth: "We called up Aviva and they told me there wasn't a policy taken out in my name and that the number we had given them was not a number they would use.

"That's when the dust settles, and you realise it's been a scam."

Aviva was not at fault. Victims are lured in by genuine-looking websites and are sent professional-looking invoices.

Mr Simpson received insurance documents that looked so real, they even fooled the police officer at the accident.

"She said, 'Your car's not popping up as insured'. Straight away I went to my glove box, pulled the insurance documents, showed her the documents and she read through it and said, 'That's totally fine'," he said.

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Police say young drivers are most likely to be targeted by ghost brokers, partly because they are often looking to reduce their insurance costs.

According to the RAC, almost half of young drivers said insurance costs were a top concern.

Exclusive data obtained by Sky News from Action Fraud reveals "ghost broking" reports have risen by 30% since 2019.

Detective Superintendent Tom Hill, head of the City of London Police's Insurance Fraud Enforcement Department, said social media is behind this increase: "There are limited barriers to entry for social media accounts to be set up so people can take out car insurance and spread the word quite widely.

"Do your research and make sure you're dealing with a genuine broker or genuine insurance company. If the conversation has been moved on to WhatsApp, for example, alarm bells should be ringing".

In 2024, victims of ghost broking lost an average of £2,206.

Victims lose money to the scam and then have to pay additional costs to repair their cars after an accident. They could also face criminal charges, a fine or licence points if found to be driving without a valid licence.

(c) Sky News 2025: 'Ghost broking': Reports of scammers selling fake car insurance rise by 30% over five years