Aviva, a leading insurance company, is warning about the surge in ghost broking cases, where fraudsters pose as legitimate insurance agents to sell fake or invalid motor insurance to young drivers. The company has detected a 22% increase in ghost broking cases since 2023, with fraudsters often targeting young drivers via social media. According to Aviva’s data, 84% of young drivers who purchased a fake policy from a ghost broker experienced serious issues, including declined claims and falsified details.
The average loss for young drivers who buy fake insurance policies is around £2,000, and they also risk fines, car seizure, and higher premiums for driving uninsured. Aviva has uncovered one suspected ghost broker who pocketed over £150,000 by selling worthless policies online. The company is urging tougher enforcement, stronger penalties, and better education to crack down on ghost broking.
Aviva has identified a sharp rise in ghost broking scams using fake, professional-looking websites that impersonate legitimate insurers. These portals are designed to appear credible, capturing young drivers’ personal details, accepting payments, and issuing counterfeit insurance documents. The company warns that these scams don’t just leave victims uninsured, but also expose them to identity fraud, as criminals frequently sell stolen personal data on the dark web.
To tackle ghost broking, Aviva has set out a three-point plan, which includes better enforcement, tougher penalties, and greater awareness. The company is calling for social media platforms to only allow FCA-verified accounts to advertise insurance, and for stronger enforcement of rules to prevent ghost brokers from advertising access to cheap insurance on social media.
Aviva is also investing in solutions that empower young drivers, such as its telematics-based insurance, QuoteMeHappy Connect, which rewards safe habits with lower renewal premiums and e-vouchers. The company is urging young drivers to be cautious when buying insurance on social media and to always check the seller is genuine before paying.
According to a survey conducted by Aviva, 66% of young drivers agree that social media platforms should only use FCA-verified accounts for insurance ads, and 70% say an in-app warning on social media would make them less likely to buy insurance on social media. The company’s tips to avoid ghost broking include being wary of anyone selling insurance on social media, doing research, verifying the broker, and checking the insurer.
Overall, Aviva is highlighting the growing problem of ghost broking and the need for tougher enforcement, stronger penalties, and better education to protect young drivers. The company is urging young drivers to be cautious when buying insurance on social media and to always check the seller is genuine before paying.