Driving experts are issuing an urgent warning to motorists across the UK, alerting them to a dangerous scam that could see them breaking the law without even realising it.
A growing number of drivers are falling victim to fraudulent car insurance policies, leaving them exposed to £300 fines, six penalty points, and even having their vehicles confiscated.
The Rise of 'Ghost Broking'
As International Fraud Awareness Week approaches, the specialists at One Sure Insurance have highlighted the increasing threat of 'ghost broking'. This sophisticated scam involves criminals selling completely fake or invalid insurance policies, primarily through social media platforms like TikTok and various messaging apps.
"It is natural for drivers to assume that once they have paid for a policy that they are legally insured. Unfortunately, many people are being hoodwinked by scammers, and finding themselves without any legitimate cover," explained a spokesperson for One Sure Insurance.
Unlike those who deliberately drive uninsured, victims of ghost broking genuinely believe they are fully covered. The devastating truth often only emerges when they are stopped by police or, worse, when they attempt to make a claim after an accident.
Severe Consequences for Unwitting Drivers
The repercussions of driving without valid insurance are severe, regardless of whether the driver was aware of the situation. The penalties can include:
- Six points added to your driving licence
- Immediate vehicle seizure by police, with the car potentially being destroyed if not reclaimed
- Court action leading to an unlimited fine and a driving disqualification
"Motorists are being hit with £300 fines, six penalty points and even losing their cars, all because the policy they bought was invalid without their knowledge. It is one of the easiest ways to break the law without realising it," the spokesperson added.
How to Spot and Avoid the Scam
Experts note that young drivers are being specifically targeted with "too good to be true" offers that appear convincingly genuine. These scams often feature professionally forged policy documents and stolen branding from legitimate insurance companies to deceive victims.
"The challenge here is being able to spot these ghost brokers. They appear professional and legitimate since they send official-looking documents, offer 'discounts', and then often disappear the moment payment is made," warned the spokesperson.
They also stressed that "being scammed is not a legal defence" if you are caught driving with an invalid policy.
To protect themselves, drivers are urged to perform three essential checks before purchasing any cover:
- Confirm the insurer is registered with the Financial Conduct Authority.
- Be highly cautious of insurance sold exclusively through social media or messaging apps.
- If using a broker, always verify the policy directly with the insurer before driving the vehicle.
With insurance fraud costing the industry over £1 billion annually, this warning serves as a critical reminder for all motorists to ensure they are purchasing policies from verified and legitimate vendors.
