Be aware of ghost brokers
2nd May, 2018
From November 2014 to October 2017, Action Fraud received more than 850 reports linked to ghost broking, with reported losses for both individuals and organisations totalling £631,000. On average, each individual victim lost £769 from this type of fraud.
The City of London Police’s Insurance Fraud Enforcement Department (IFED) has launched a national awareness campaign about ghost broking and how to avoid it.
What is ghost broking?
Ghost broking is the term used when a person sells fraudulent insurance by forging insurance documents, misrepresenting the policy holder’s details to bring the price down so it will not withhold when you need to make a claim, or take out a genuine policy before cancelling it very soon after and claiming the refund and the victim’s money. Ghost broking is more common with Motor Insurance but can happen with any type of policy.
How can I avoid ghost brokers?
IFED are issuing the following tips to help avoid becoming a victim to ghost brokers:
- If an offer looks too good to be true, then it probably is
- Ghost brokers often advertise on student websites or money-saving forums, university notice boards and marketplace websites. They may also try to sell insurance policies in pubs, clubs or bars, newsagents and car repair shops
- Be wary of brokers only using mobile phone or email as a way of contact. Ghost brokers have even been reported using messaging apps, such as WhatsApp and Facebook, as they don’t want to be traced after they have taken your money
- Always check on the Financial Conduct Authority or the British Insurance Brokers’ Association website for a full list of all authorised insurance companies
- You can also contact the insurance company directly to verify their details
- For Motor Insurance, you can check to see if your car is insured on the Motor Insurance Database website.
Another way to avoid ghost broking is to use an insurance broker that you can trust. Legitimate Insurance Brokers, like ourselves, appear on the Financial Conduct Authority register and be regulated by this body.
Going through an Insurance Broker can not only save you time and money, but they are committed to sourcing your insurance policy from a reputable insurer with good financial standing, underwriting and claims service.
If you are worried about sourcing insurance, contact a member of the team today who will be happy to discuss your requirements with you.
Sources:
www.actionfraud.police.uk/steerclearoffraud
