There has been a scary rise in so called ‘Ghost broking’.
This is where fraudsters pose as car insurance brokers and the crime is on the rise, leaving hundreds of victims up to £1,300 poorer and potentially without any insurance cover.
Data obtained from the National Fraud Intelligence Bureau via a Freedom of Information request submitted by Compare the Market shows that reports of ghost broking to Action Fraud rose by 32% between 2023 and 2024 – from 352 to 463.
Ghost brokers will often pose as employees of well-known insurers, using significantly cheaper prices to lure victims in. According to the City of London Police, they will either forge insurance documents, falsify your details to bring the price down, or take out a genuine policy for you before cancelling it soon after.
The latest figures from Action Fraud showed that 72 reports of ghost broking had been lodged in the first two months of 2025 – reflecting a similar pace to last year’s reporting – and that 18-34-year-olds had suffered the largest financial loss of any age group, £1,167.
According to the City of London Police, victims of ghost broking often don’t realise they have been duped until they get stopped by police or try to make a claim after an accident or theft.
If you think that you might have been a victim of a ghost broker, you can report your concerns to Action Fraud at actionfraud.police.uk or on 0300 123 2040.
Sam Wilson, Expert at Compare the Market, said, “Ghost broking is an increasing threat to motorists, with reported cases up by almost a third in 2024. These are not small sums either – losing hundreds or even thousands of pounds could have a lasting impact.
“Drivers should take care to only buy insurance from trusted, verified providers. Be wary of anyone selling policies through social media, community listings, or asking for payment in cash or via bank transfer. If a deal looks unusually cheap or too good to be true, it probably is.
“If you’re worried you might have fallen victim to ghost broking, it’s a good idea to contact your insurer to confirm that your policy is genuine. That peace of mind could save you from serious problems if you ever need to make a claim.
“Spending a little time researching your options and comparing verified insurers on trusted comparison sites could make all the difference.”
Generally, don’t just click on social media links or interact with an unsolicited caller but say you’ll call back on another line and then ring the company’s main number, always pay by credit or bank card and dont give out personal details to any caller who will almost certainly sell them onto other fraudsters.
Last year, 55 to 66-year-olds reported the biggest losses of any age group. Their average loss was £1,369 for every case of ghost broking reported during 2024.
Younger victims, while significantly larger in number, reported lower average financial losses. Those aged 18 to 34 reported average losses of £936, and those aged 35 to 54 reported an average loss of £606.
The data shows that ghost broking disproportionately impacts younger drivers in terms of volume. In 2024, just over 300 reports of ghost broking were made by 18-34-year-olds to Action Fraud – the most of any other age group. Those aged 35 to 54 submitted the next highest number, with more than 100 reports.
