Thursday, 22 February 2018

Drivers warned over fake insurance scams

Drivers warned over fake insurance scams

Police have warned that thousands of drivers are in danger of falling victim to fraudulent ghost car insurance scams.

Action Fraud, who are the national fraud and cybercrime reporting centre run by the City of London Police have discovered an increasing number of drivers who are being sold fraudulent policies via social media.

From November 2014 to October 2017, Action Fraud received 850 reports that related to ‘ghost broking’, with a total loss for individuals and organisations coming in at £631,000. On average each driver suffered a personal loss of £769 each.

A campaign to raise awareness of the scammers who were found to be targeting men aged 20 to 29 has been launched by the City of London Police’s Insurance Fraud Enforcement Department (IFED) having already taken action in 417 cases, including taking down one fraudster who was found to have issued 133 fake policies online with another being discovered to have made £59,000 from the scams.

The IEFD have warned there could be thousands of drivers still out there who are unaware that their policies are actually fake and in the event of a claim being needed, the policies won't pay out as well as the consequences of driving without valid insurance if the police were to pull the un-insured driver over.

IFED head Detective Chief Inspector Andy Fyfe said: “Ghost brokers trick unsuspecting victims with offers of heavily discounted car insurance, leaving them with a policy that isn’t worth the paper it’s written on and open to the severe harm that comes with driving without valid insurance.”

“As well as the personal harm experienced by victims, ghost brokers also cause financial harm to the insurance industry, driving up the cost of insurance premiums for all motorists.

“While an offer of cheap car insurance may seem tempting, falling victim to ghost broking will end up costing you far more in the long run – both in terms of money and your licence.”

It is vital that every young driver be aware of these insurance scams via Social Media. When considering insurance cover, it is advised to choose a reputable motor insurer that has been given the necessary permissions and falls in-line with regulatory compliance and can simply be checked that it is a legitimate business. Always ensure to check all of the paperwork you will receive from your insurer and it is worth remembering, if a deal sounds too good to be true then it probably is.