You are here: Home - Insurance - News -

Warning over Black Friday insurance scams

Written by:
Black Friday bargain hunters are not just being warned about fake goods, they’re also being urged to look out for bogus insurance deals.

The Insurance Fraud Bureau (IFB), which works with UK police to investigate insurance fraud, says fraudsters could try to exploit the shopping bonanza event on Friday with fake car insurance offers.

So-called ‘ghost brokers’ pose as legitimate insurance brokers and sell forged or invalid car insurance policies to unsuspecting drivers, who are lured by very cheap, too-good-to-be-true premiums.

They often use online ads and social media such as Facebook and Instagram to coax in their victims.

According to the City of London Police, the average person loses £769 when taking out a fraudulent motor insurance policy from a ‘ghost broker’.

Last month, Action Fraud warned that people aged 17 to 24, especially men, were most likely to fall victim to this type of scam because they have less experience buying insurance, are more likely to have tighter budgets, and are more likely to use social media.

“Ghost brokers leave victims with a policy that isn’t worth the paper it’s written on and open to the severe consequences that comes with driving without valid insurance,” said Detective Chief Inspector Andy Fyfe of the City of London.

“It’s a legal obligation to have valid car insurance, and if you’re caught by police without it you could face the following; points on your driving licence, a fixed penalty notice, having your vehicle seized and possibly destroyed, and being liable for claims costs if involved in an accident.”

 ‘Ghost broker’ warning signs

  • Be wary of unsolicited calls from insurance brokers – authorised firms are unlikely to contact you out of the blue;
  • Be cautious of being approached by brokers in unconventional ways such as on social media, by brokers selling car insurance in pubs or through adverts in newsagents or universities;
  • Be wary of brokers who only provide scant contact details (e.g. DM only on social media or mobile phone), check to see if they have an office address and landline telephone;
  • Check the broker firm is on the Financial Services Register and authorised by the Financial Conduct Authority or the British Brokers’ Association;
  • If you suspect that you have been contacted by a ghost broker, or have fallen victim to an insurance fraud, you can report it to Action Fraud at / 0300 123 2040 or to the Insurance Fraud Bureau’s Cheatline at / 0800 422 0421


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week