Overview
- The FCA warned young motorists on Wednesday about “ghost broking” on social and messaging platforms and urged checks via its online Firm Checker tool.
- A Kantar survey of 1,000 people aged 17 to 25 found 49% bought insurance through social or messaging apps and 39% did not feel confident spotting fake policies.
- Ghost brokers pose as real sellers and offer unusually cheap deals that are fake, built on falsified details, or cancelled soon after purchase, leaving drivers uninsured and facing fines and vehicle seizure.
- The regulator said it plans to work with influencers to reach young drivers on the platforms they use and advised buying only from firms with verifiable websites, phone numbers, and addresses.
- Industry data point to growth in these scams, with the Insurance Fraud Bureau reporting a 52% rise in 2023–2024 and Aviva citing a 22% increase since 2023, highlighting heightened risk for new and budget‑pressed drivers.