Fake Insurance Scam Targets Young Drivers: What Ghost Brokers Do and How to Spot Them

The facts

• 1A 'ghost broker' is a fraudster who sells fake or heavily altered insurance policies, often at prices far below what a legitimate insurer charges, to trick buyers into thinking they are legally covered.
• 2The UK's Financial Conduct Authority (FCA) warns that ghost brokers target young drivers on social media apps like Instagram and WhatsApp, promising cheap deals that real insurers cannot match.
• 3Victims of ghost broker scams lose both the money they paid for the fake policy and any claim money if they have an accident — they are also legally uninsured, which can mean fines or loss of a licence.
• 4Car insurance for young drivers in the UK can cost over £2,000 a year because statistics show new drivers have more accidents, making them desperate for cheaper options — exactly the vulnerability ghost brokers exploit.
• 5The only safe way to verify a UK insurance policy is real is to check the Motor Insurance Database (MID), a national register where all valid policies must appear within 14 days of purchase.