The City of London Police’s Insurance Fraud Enforcement Department (IFED) is reminding young people to remain wary of ‘ghost brokers’ as this age group continues to be a target for this type of fraud.
The latest figures, released today, show that 17-29 year-olds remain the most likely age group to fall victim to fraudsters selling fake car insurance, also known as ‘ghost brokers’, with a number of these victims likely to be students.
From January to August 2021, Action Fraud, the national fraud and cyber-crime centre, received 351 reports of ‘ghost broking’. Whilst the number of reports has decreased by nearly a quarter (23 percent) from the same period last year, young people continue to make the most reports for this type of fraud, with over a third (34 percent) of reports coming from 17-29 year-olds during this period.
Figures also show that male drivers continue to be the most affected by this type of fraud, with more than half (61 percent) of reports during this period submitted by men. Of the reports made by 17-29 year-olds, over half (62 percent) were from men.
The reported losses to ‘ghost brokers’ for all age groups totals £786,700 so far this year, with the average victim losing around £2,250.
Detective Chief Inspector Edelle Michaels, Head of the City of London Police’s Insurance Fraud Enforcement Department (IFED), said:
“Whilst it may be an exciting time of year for students who have either returned to university or started out on their higher education journey, we urge young people to make sure that they are properly insured. Many students rely on their cars to travel to and from university or around where they study, and so may have recently restarted or renewed their insurance after the summer break.
“The high cost of insurance premiums and money often being tight for students unfortunately make this group a prime target for ‘ghost brokers’, therefore it is important to check that you have signed up for a legitimate insurance policy. Whilst the offer of a cheap deal may be enticing, a fraudulent policy will end up costing you more in the long run in the form of a fine, points on your licence, your car being seized and crushed, and covering the cost of a valid policy.”
During the summer, IFED executed a week of action across the country to tackle the ongoing issue of ‘ghost broking’. The arrests highlighted the immoral tactics used by these criminals to defraud members of the public, including an individual who used his family and friends to refer his ‘services’ to others, and a car dealer who exploited his knowledge of the motor industry and customer relationships to deceive clients into purchasing fraudulent policies.
Officers also came across people in their early twenties targeting their peers through sophisticated social media campaigns. This follows on from a case investigated by the unit earlier this year, in which two men aged 21 and 25 pleaded guilty to acting as unauthorised brokers after fraudulently selling motor insurance policies via social media to young people. The pair established themselves on social media as insurance brokers, claiming to have inside links to some of the UK’s biggest insurers and offering tantalising deals to youngsters in exchange for ‘administrative’ fees ranging from £50 to £400.