If you haven’t heard of “ghost brokers” yet then you need to read on as they could be a problem that we will be hearing a lot about in the future. You or someone you know may even have been affected by one already.
It is essentially an insurance scam where fraudsters target people looking to buy a car insurance policy and rip them off. They usually go for higher risk drivers as their policies are more expensive. This group of car drivers includes young people and those who have recently acquired their drivers’ license. They also target drivers who do not speak English as a first language.
They are targeted through social media and listings websites with offers of massively discounted insurance. The ghost brokers use various tricks but the end result is almost always the same - they have the cash but the driver has no insurance.
There have not been any documented cases of “ghost brokers” in Northern Ireland but it is only a matter of time. Some experts believe there could be as many as 20,000 motorists in the UK with one of these fake car insurance policies.
The problem is even if you are a victim of one of these scams you could get into trouble. You could be fined and get penalty points on your license for driving a car without insurance, even though that might be through no fault of your own. It is therefore in your interest to make sure the policy you have is genuine.
How “Ghost Brokers” Operate and How To Avoid Them
The best way to avoid the scams run by ghost brokers is to be aware of how they work. The first piece of advice is one that is common to just about everything in life – if it looks too good to be true it probably is. A lot of this is about using common sense.
That said some of these frauds by ghost brokers are very sophisticated and convincing. Using an insurance broker is quite common and in the vast majority of cases it is completely safe. That is one of the reasons why many people are sucked in.
Ghost brokers operated their scams in three main ways:
It is essentially an insurance scam where fraudsters target people looking to buy a car insurance policy and rip them off. They usually go for higher risk drivers as their policies are more expensive. This group of car drivers includes young people and those who have recently acquired their drivers’ license. They also target drivers who do not speak English as a first language.
They are targeted through social media and listings websites with offers of massively discounted insurance. The ghost brokers use various tricks but the end result is almost always the same - they have the cash but the driver has no insurance.
There have not been any documented cases of “ghost brokers” in Northern Ireland but it is only a matter of time. Some experts believe there could be as many as 20,000 motorists in the UK with one of these fake car insurance policies.
The problem is even if you are a victim of one of these scams you could get into trouble. You could be fined and get penalty points on your license for driving a car without insurance, even though that might be through no fault of your own. It is therefore in your interest to make sure the policy you have is genuine.
How “Ghost Brokers” Operate and How To Avoid Them
The best way to avoid the scams run by ghost brokers is to be aware of how they work. The first piece of advice is one that is common to just about everything in life – if it looks too good to be true it probably is. A lot of this is about using common sense.
That said some of these frauds by ghost brokers are very sophisticated and convincing. Using an insurance broker is quite common and in the vast majority of cases it is completely safe. That is one of the reasons why many people are sucked in.
Ghost brokers operated their scams in three main ways:
- Fake Documents - this is the crudest example of the scam and should therefore be the easiest to spot. The fraudsters will give you completely fake documents. They will not bother to contact an insurance company at all. They will use real documents to base their fakes on and with modern computer software they can look very real. But this is an easy scam to check as you enter your car registration at the website http://www.askmid.com/ and it will tell you if it has a valid insurance policy.
- Cancelled Policy - this is a more sophisticated scam where the fraudsters actually put in place a proper and valid insurance policy with a real insurance company. They will send you the documents so you will have a certificate. The fraudsters will then cancel the policy without your knowledge and will keep the money from any refund that is given. This scam is harder to spot.
- Fake Information - the final method that ghost brokers use also involves taking out a real car insurance policy. However, they will not use your correct details. They may say you are older than you are or live at a different address. The fake information is designed to give you a lower premium and they will pocket some of the “savings”. But it also means that your insurance will be invalid.
The final piece of advice is to be vigilant when considering taking insurance from a person or “company” that you find on the internet or on social media. If you are not familiar with the company or the name check it out or ignore it. You should also be aware of claims and price promises that are guaranteed and you should be very wary about paying cash. Legitimate insurance brokers are able to take credit or debit card payments and will not insist on cash. Legitimate brokers will also be registered with the British Insurance Brokers Association so it is worthwhile checking there too before handing over any money.
0 comments: