General Insurance Article - Beware ghost broking this halloween


Chris Monk, head of fraud at broker The AA, agrees that there has been a sharp rise in the number of ‘ghost brokers’ targeting via social media, vulnerable people such as students or ethnic groups who may not fully understand how car insurance works.

 He says: “We have voided well over 1,000 motor insurance policies this year with a combined premium value of around £700,000 due to known fraud including ghost broking.
 
 “Ghost broking involves an unauthorised intermediary setting themselves up to target unsuspecting and / or vulnerable groups of people by offering them cheap insurance that they otherwise would not be able to obtain. The cover is arranged using a host of inaccurate personal details and paying for the cover using compromised or stolen payment information, such as credit cards.
 
 “We have worked closely with our insurers and the Insurance Fraud Bureau and we know that this has been successful in identifying and closing down ghost broking rings, which are often very convincing and sometimes with their own websites. Unfortunately, these people prey on people who don’t know how the insurance system works or are unable or can’t afford to obtain car insurance through legitimate sources.
 
 “Our message is, if a policy seems too good to be true, it probably is. The consequences can be that you become a victim of crime and what’s more, you risk prosecution for driving without insurance, by which time the ghost broker will have simply faded through the brickwork and disappeared into the ether.”
  

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.