Drivers in the UK are being warned that they may unknowingly be breaking the law by purchasing invalid or fraudulent motor insurance policies. This could lead to fines of up to £300, accumulation of six penalty points, and even the seizure of their vehicles. With International Fraud Awareness Week approaching, experts at One Sure Insurance are emphasizing the increasing threat posed by criminals selling fake insurance through social media platforms and messaging apps, a scam commonly referred to as ghost broking.
The issue primarily affects individuals who believe they are adequately insured. Many victims of ghost broking are unaware of their lack of coverage until they are stopped by police or attempt to make a claim after an incident. A spokesperson for One Sure Insurance stated, “It is natural for drivers to assume that once they have paid for a policy, they are legally insured. Unfortunately, many people are being hoodwinked by scammers, finding themselves without legitimate cover.”
The consequences for motorists can be severe. Operating a vehicle without valid insurance can incur significant penalties. According to One Sure Insurance, drivers are facing £300 fines, accumulating six penalty points, and potentially losing their cars—all due to unknowingly purchasing an invalid policy.
Targeting Young Drivers with Deceptive Offers
Younger motorists are particularly at risk from these scams, with fraudsters targeting them through enticing offers on platforms like TikTok. These deals often appear genuine, complete with counterfeit policy documents and stolen branding from legitimate insurance companies. The spokesperson elaborated, “The challenge here is being able to spot these ghost brokers. They appear professional and legitimate since they send official-looking documents, offer ‘discounts’, and then often disappear the moment payment is made.”
Unfortunately, many drivers do not realize they have been scammed until law enforcement intervenes. The spokesperson added, “Being scammed is not a legal defense.”
One Sure Insurance is urging all motorists to perform three critical checks before purchasing vehicle coverage. In light of International Fraud Awareness Week, it is essential to emphasize the rising scale of consumer fraud in the UK. Insurance fraud costs the industry over £1 billion annually, and fraudsters are increasingly diversifying their methods of contacting potential victims.
Essential Checks for Motorists
Motorists are advised to ensure they not only pay for insurance but also confirm that they are purchasing from a legitimate provider. “If you can’t verify who sold you the policy, you may not be insured at all,” the spokesperson concluded.
As the risk of ghost broking continues to grow, drivers must remain vigilant. By taking proactive steps and conducting thorough checks, they can protect themselves from falling victim to these fraudulent schemes.
