Young drivers are being urged to watch out for fraudulent car insurance deals sold online by so-called ‘ghost brokers’, as new data from the Insurance Fraud Bureau (IFB) reveals a 50% surge in cases over the past two years.

These bogus brokers are increasingly targeting first-time drivers and learners via social media platforms such as Facebook, Instagram, Snapchat and TikTok, luring victims with what appear to be heavily discounted insurance deals. In reality, the policies are either doctored documents or taken out using stolen personal details, leaving the driver completely uninsured.

Ursula Jallow, director at IFB, said: “New drivers are caught out by Ghost Brokers because they face higher premiums and have had less experience in purchasing insurance policies for themselves, which unfortunately means they are more likely to be attracted to car insurance deals, that are too good to be true.”

Association of British Insurers (ABI), City of London Police and the IFB have joined forces in conjunction with the Government’s Stop! Think Fraud campaign, they are encouraging people to report issues of ‘ghost broking’ to CheatLine.

Fraud Minister Lord Hanson wanted to thank the ABI, IFB and City of London “for warning drivers of the risks they face if they end up purchasing fake motor insurance, and driving without proper cover.

“Last year, we published the Insurance Fraud Charter to combat scams like ghost broking, and we will keep working with our partners in law enforcement and the industry to stamp out this despicable crime.”

Jallow added: “The impact is devastating. We’ve seen victims lose thousands of pounds, have their identities stolen, their confidence and self-esteem shattered, and in some cases, they have even had their car seized for driving uninsured.”

The policies are taken out by using stolen details from other drivers who are cheaper to insure, whose details have been sold on, or whose details have been copied; both scenarios leave the victim uninsured.

A YouGov survey revealed that one in five 18 to 24-year-olds have used social media to search for insurance deals, meaning thousands of young people are getting targeted by ‘ghost brokers’ per day.

Becoming a victim of insurance fraud scams means drivers can have their cars seized by police, they may get a driving ban and/or a court referral resulting in an unlimited fine, receive six points on their licence and a £300 fine.