Ghost Broking

Ghost broking targets people seeking cheap car insurance, often advertising on social media, messaging apps, and community notice boards with offers significantly below market rate. Fraudsters operate in three ways: they issue entirely fabricated policy documents with invented insurer details; they take out real policies using false information (falsely lowering premiums) and then cancel them for a refund while providing the victim with the original documentation; or they steal the identity of a genuine insurer or broker to create convincing but fake policies.

Victims drive with documents they believe are valid. They only discover the fraud when they are involved in a collision, stopped by police, or attempt to make a claim — at which point they face prosecution for driving without insurance, vehicle seizure, and personal liability for any damage caused in an accident.

Ghost broking is prosecuted as fraud under the Fraud Act in the UK and carries custodial sentences for perpetrators. Drivers should verify any broker's registration with the Financial Conduct Authority (FCA) and confirm the policy directly with the named insurer before relying on documentation.