Ghost brokers haunt unwitting motorists

ghostPolice are urging motorists looking for insurance deals to keep their wits about them and be wary of fraudsters lurking in the darkest corners of the web. A phenomenon nicknamed ‘ghost broking’ is a growing problem as phantom insurance sellers get increasingly sophisticated.

Ghost broking takes on a variety of disguises, but the results are always the same: the unwitting motorist is left without insurance and out of pocket. Victims of ghost broking are often unaware that they have been targeted until it’s too late. Having a claim rejected because you’ve bought a bogus policy is bad enough, but not as bad as being hauled before the courts for breaking the law.

The latest incarnation of the scam involves fraudsters taking out a policy for ‘low risk’ countryside addresses (rural Scotland is a favourite haunt) before doctoring the paperwork and selling it to a ‘high risk’ city centre motorist. Neither the homeowner nor the motorist knows that a fraud has been committed until a claim is made.

Having doctored and resold the fraudulent policy the scammers then cancel the original within the ‘cooling off’ period and pocket the proceeds. It’s a neat trick, but one that hasn’t gone unnoticed by City of London Police’s Insurance Fraud Enforcement Department who are currently investigating hundreds of thousands of pounds’ worth of fraud in Scotland and the North.

Detective Sergeant Matt Hussey commented “This is becoming an escalating problem. In some cases, people have had their cars taken because they had no insurance. There are also cases where people have received fines and penalty points”.

Homeowners in Scotland who receive unsolicited or suspicious looking mail from insurers are being asked to get in touch with the provider and get in touch with their fraud department. Fraud hits honest motorists hard in the pocket and the Association of British Insurers (ABI) estimates that fraudulent claims add £50.00 to every law abiding motorists premium.

In order to avoid being scammed by ghost brokers the ABI recommends you choose a provider who is listed on the Financial Services Register (you can check here) and give social networking sites and newsagent’s windows a wide berth.

Quoteline Direct is a trusted FCA registered broker with nearly 50 years’ experience. We compare policies from some of the biggest names in the business to find the right car insurance quote for you. To find out more visit Quoteline Direct or Tel: 0161 874 8000 to speak with an experienced consultant.

 

 


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