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Watchdog warns of surge in fake car insurance scams
Nearly half of drivers aged 17 to 25 have purchased car insurance through social media or messaging apps, many of which are fraudulent, according to the UK's Financial Conduct Authority (FCA).
These so-called "ghost brokers" sell policies that leave victims unknowingly driving without valid insurance, exposing them to prosecution, fines, or vehicle seizures.
How the scam works
Ghost brokers often pose as legitimate insurance sellers, offering suspiciously low premiums to cash-strapped young drivers. The policies may be entirely fake, falsified to reduce costs, or canceled shortly after purchase.
The FCA's research, based on a survey of 1,000 drivers, highlights the growing threat as cost-of-living pressures push more young people toward cheap but risky deals.
Real-life impact: A victim's story
Amie Donaghey, 21, told BBC News NI she was left with a criminal conviction after falling victim to a ghost broker. She only discovered the fraud when police stopped her and confirmed she had no valid insurance.
"I was quoted a price that was a fraction of the £4,500 high-street insurers were charging. When I tried to contact the broker after realizing I'd been scammed, he ghosted me-blocked on everything."
Amie Donaghey, ghost broking victim
Rising fraud reports
The Insurance Fraud Bureau and insurer Aviva have both reported an increase in ghost broking cases in recent years. Driving without insurance is a criminal offense in the UK, carrying severe penalties.
Graeme Reynolds, the FCA's director of insurance, warned that "tight budgets make cheap offers tempting-and scammers take advantage of that."
"Don't get ghosted by a policy that doesn't exist. Check the FCA Firm Checker before you buy. Driving uninsured could cost you far more than any premium."
Graeme Reynolds, FCA
How to stay safe
The FCA advises verifying brokers through its Firm Checker tool. Legitimate brokers should have a website, phone number, and physical address.
The regulator is also partnering with social media influencers to raise awareness among young drivers about the risks of ghost broking.
