Beware of Ghost Brokers: What You Need to Know to Protect Yourself

The Rise of Ghost Brokers
Ghost brokers are posing a growing threat to consumers seeking affordable car and home insurance. Targeting young people and social media users, these fraudsters often promise incredibly low premiums that, unfortunately, leave buyers without valid coverage when they need it most.

How to Spot a Ghost Broker Scam
Ghost brokers use several tactics to deceive consumers, including:

• Fake Policies: Providing forged insurance documents that look real but leave the policyholder uninsured.
• Altered Details: Taking a genuine policy but using incorrect information to lower the premium, which voids the insurance if you make a claim.
• Policy Cancellations: Canceling legitimate policies shortly after issuance to pocket the refund, leaving you uncovered.

Red Flags to Watch Out For

• Unbelievably Low Premiums: If a deal sounds too good to be true, it likely is.
• Unprofessional Contact Methods: Be cautious of brokers who only communicate through social media or messaging apps.
• Lack of Accreditation: Confirm the broker’s registration on the Financial Conduct Authority’s (FCA) register.
• Request for Cash or Untraceable Payments: Payment requests in cash or via unusual methods are warning signs.