Published: 14 November 2025
FOR INTERMEDIARIES ONLY
Don’t get haunted by fraud: Spotting ghost brokers
Liz Banner, Head of Policy Validation, Allianz UK said “In the UK, ghost brokers have become a growing concern in the motor insurance industry, using crafty tactics to trick people into buying fake policies. As a broker specialising in car and motor insurance, it's important to understand these challenges and help your customers protect themselves.”
Understanding ghost broking
- Ghost brokers pose as genuine insurance agents to sell fraudulent policies.
- In motor insurance, they may use stolen personal details to create fake policies.
- These actions can lead to financial and reputational harm for customers.
- Counterfeit motor insurance policies appear legitimate but offer no real coverage.
- Customers often discover the scam when attempting to make a claim and find their policy invalid.
Helping customers verify their policies
Brokers play a crucial role in helping customers verify the authenticity of motor insurance policies. We all need to encourage purchasing insurance through licensed brokers and direct channels to minimise the risk of ghost brokers.
Advising customers to confirm policy details directly with their insurer will help safeguard their finances and give them peace of mind.
Ask them to verify:
1. contact information
2. coverage terms
3. policy registration.
What brokers should know about ghost broking
Tactics and channels: Ghost brokers often operate online, using social media platforms, websites, and email to reach potential victims. They may also use word-of-mouth referrals to gain trust.
Target audience: Ghost brokers typically target individuals who are looking for affordable insurance options, such as young drivers or those with limited insurance knowledge. Being aware of these vulnerable groups and providing tailored advice can help them avoid scams.
Signs of fraud: Educating customers on common signs of ghost broking, such as unusually low premiums, pressure to pay quickly, lack of official documentation, and unconventional payment methods like cash or wire transfers will give customers the edge on ghost brokers.
Legal implications: Falling victim to ghost broking can lead to legal challenges for customers, such as unknowingly driving without valid insurance, which is against the law in the UK. This situation might result in fines, points on their license, responsibility for accident-related costs, and potential difficulties in securing insurance in the future.
Taking action against ghost broking
Ghost broking is an issue that needs careful attention and action. By informing customers about the risks and guiding them to check their motor insurance policies, we can help them steer clear of financial loss and fraud. Together, we can create a safer and more reliable insurance environment for everyone in the UK motor insurance market.
More information
We understand the importance of protecting our brokers and their customers against fraud. Discover our podcast, videos, articles and resources which contain advice on the different types of fraud, and how to spot and prevent scams. Read our fraud awareness page for brokers to help you and your customers stay safe.
