With Fraud Awareness Week now underway (16–22 November), Manjit Rana, EVP of Insurance at Clearspeed, is drawing attention to the growing threat of ghost broking and the lessons it holds for the wider insurance industry.
Recent figures from the Insurance Fraud Bureau (IFB) show that cases linked to ghost broking scams have risen by more than 50% in the past two years, highlighting the scale of the issue. Fraudsters are increasingly using digital platforms and taking advantage of financial pressures to deceive vulnerable consumers, particularly young drivers and gig economy workers, into purchasing invalid motor insurance policies.
“Fraud trends often mirror shifts in society and technology,” said Manjit. “The combination of economic strain and easy access to sophisticated digital tools has given rise to a new wave of opportunistic and organised fraud. Scammers can now create convincing fake websites in minutes, targeting consumers who are simply looking for a good deal.”
Ghost brokers often advertise cheap insurance on social media, using stolen branding or fake documentation. Many victims only realise they have been scammed when they attempt to make a claim or are asked to provide proof of cover.
“The cost-of-living crisis has created conditions where people are more likely to take risks to save money,” Man