Drivers in the UK are being warned that they may unknowingly violate insurance laws, risking fines of £300 and six penalty points for invalid or fraudulent motor insurance policies. As International Fraud Awareness Week approaches, experts from One Sure Insurance are shedding light on the alarming rise of “ghost broking,” a scam where criminals sell fake insurance through social media platforms and messaging applications.
Unlike individuals who intentionally drive without insurance, many victims of ghost broking believe they have legitimate coverage. They often discover their perilous situation only when stopped by police or attempting to file a claim after an accident. The spokesperson for One Sure Insurance stated, “It is natural for drivers to assume that once they have paid for a policy, they are legally insured. Unfortunately, many people are being hoodwinked by scammers and find themselves without any legitimate cover.”
The consequences of driving without valid insurance can be severe. Those affected can face hefty fines, penalty points, and even the seizure of their vehicles due to unknowingly purchasing invalid policies. The spokesperson emphasized, “It is one of the easiest ways to break the law without realizing it.”
Targeting Young Motorists with Deceptive Deals
One Sure Insurance reports that younger drivers are particularly vulnerable to these scams, often lured by “too good to be true” offers on platforms like TikTok. These deals frequently appear authentic, complete with counterfeit policy documents and stolen branding from legitimate insurance companies. The spokesperson explained the challenge: “The difficulty lies in identifying these ghost brokers. They present themselves as professional and legitimate, sending official-looking documents and offering discounts, only to vanish once the payment is made.”
Many drivers remain oblivious to the scam until it escalates into a legal issue. Unfortunately, being a victim of such fraud does not provide legal protection.
Essential Checks for Motorists
In light of the increasing prevalence of scams, One Sure Insurance urges motorists to undertake three critical checks before purchasing vehicle insurance. The spokesperson noted, “Insurance fraud costs the industry more than £1 billion a year, and fraudsters are diversifying their methods of reaching consumers.”
Motorists should ensure that they are not only paying for insurance but also that the vendor is legitimate. If a driver cannot verify the identity of the policy seller, they may not be insured at all.
As International Fraud Awareness Week highlights the growing scale of consumer scams in the UK, it is crucial for drivers to remain vigilant and protect themselves from falling victim to these deceptive practices.
