According to data released by the UK’s largest car insurance company, three in 10 young drivers have been duped into buying cover from a ghost broker.
Ghost brokers pretend to be a legitimate insurance company targeting those looking for cheaper coverage, which tend to be drivers under 25.
Aviva surveyed 2000 young drivers and found that 30 percent had purchased insurance from someone on social media and that 89% of this group suffered serious consequences as a result.
A fifth had a claim rejected when checks revealed their insurance was illegitimate, and one in six were stopped by police for driving without valid cover.
Aviva discovered almost 7000 cases involving ghost broking or application fraud this year.
The company also warned that anyone who buys insurance through social media will almost always be dealing with a ghost broker, making their insurance worthless.
This has a knock-on effect, leaving drivers at risk of receiving an unlimited fine, getting a driving ban or having their car seized.
A spokeswoman for Aviva told The Daily Mail: “Young drivers aged 17–25 are the first generation to grow up with social media being an integral part of their daily lives.
“However, ghost brokers are actively targeting young drivers on social media platforms, offering cheap-but-worthless car insurance that puts the young driver at risk of being uninsured.”
To stay vigilant against ghost brokers, it’s important to keep an eye out for cheap deals that seem too good to be true.
Have you lost money to a scam? Contact National Fraud Helpline. Call 0333 0033218 or fill out our Claim Form.