Drivers are being warned to watch out for a growing insurance scam that can leave motorists unknowingly uninsured despite paying for what appears to be a valid policy.
Rise in ghost broking scams
New figures from insurer Aviva show the number of ghost-brokered insurance policies identified by the company increased by 7 per cent during 2025, as fraudsters continued targeting motorists through social media and messaging platforms.
Ghost broking typically involves criminals posing as legitimate insurance brokers and offering seemingly cheap policies to drivers. In some cases, the fraudster takes a customer's money but never arranges any cover. In others, genuine policies may be purchased using false information, meaning they can later be cancelled or declared invalid.
The result is that drivers may believe they are insured when they are not.
Aviva detects over 105,000 fraudulent applications
Aviva said ghost broking formed part of more than 105,000 fraudulent insurance applications detected during 2025 as the company strengthened checks designed to identify suspicious activity before policies are issued.
The insurer said younger drivers remain one of the main targets for ghost brokers, who often advertise their services through social media posts, online groups and messaging apps.
Being caught driving without valid insurance can have serious consequences, including penalty points, fines, vehicle seizure and higher insurance costs in the future.
Record levels of insurance fraud
The warning comes as Aviva reported detecting record levels of insurance fraud last year, uncovering more than 18,400 suspect claims worth £233 million across its brands, including Direct Line.
While motor insurance fraud continues to account for the majority of fraudulent claims, the insurer said it is also seeing scams becoming increasingly sophisticated.
Fraudsters use AI and manipulated documents
Pete Ward, Head of Claims Counter Fraud at Aviva, said fraudsters are using a variety of techniques to deceive insurers and consumers. He said: "Fraud isn't a victimless crime - it drives up the cost of insurance for everyone."
"We're seeing fraud become more sophisticated, from exaggerated claims to the use of AI-generated documents, and we're continuing to invest in the tools and expertise needed to identify and stop it."
Alongside ghost broking, Aviva said it is seeing a growing use of AI-generated images and manipulated documents in attempts to support false or exaggerated insurance claims. The insurer said fraudsters are increasingly using technology to create fake accident scenes, alter photographs and submit misleading evidence in support of claims.
Tips for motorists to avoid scams
Motorists looking for insurance are being urged to take extra care before handing over personal information or making payments online.
- Check that any broker is authorised
- Ensure quotes come directly from recognised firms
- Be cautious of deals that appear significantly cheaper than comparable policies elsewhere
- Be wary of sellers who only communicate through social media or messaging apps
- Avoid those who pressure customers into making quick decisions
Aviva said its fraud detection teams continue to work alongside advanced data analysis tools to identify suspicious activity and prevent fraudulent policies and claims from progressing.
Mr Ward added: "By detecting and preventing these claims, we're helping protect honest customers from the cost of fraud."
With ghost broking continuing to rise, motorists are being urged to carry out checks before buying insurance to avoid discovering too late that the policy they paid for is not valid.
