Approximately twenty thousand Brits may in danger of being caught driving without motor car insurance after new evidence has been revealed regarding fraudsters masquerading as discount car insurance brokers selling fake or fraudulent policies.
The scam, estimated to have generated multiple millions of pounds, has been put into operation by so-called ‘ghost brokers’ targeting Brits on a budget looking for discount car insurance. These ghost brokers carry out their fraud through small ads or websites claiming to offer discount car insurance, enticing younger drivers who face massive premium prices and non-native English speaking communities who may not have the requisite linguistic skills for enough comprehension of the insurance industry in the UK, which can lead to these scammers issuing wholly fabricated policies to their victims.
In some cases these fraudsters may make applications to legitimate car insurance companies on behalf of their victims, yet alter personal details such as address and age in order to undervalue the cost, then pocketing the difference. One such customer, female driver 18 years of age that lived in the Midlands, was told that she could insure her Ford Fiesta for £2,000 – half that of the cheapest quote she could find elsewhere – through a friend of a friend, provided she pay him a £700 cash down payment.
However, after meeting with the ghost broker, she handed over the cash and was told to pay a £70 first instalment, yet when the payment came out of her bank account, it was far in excess of the agreed amount. Then, the hoodwinked woman found out that the fraudster had deliberately misrepresented her to an insurer, telling the provider that she had a five-year no claims bonus and that she was 48 years of age, and told the insurer she was employed as a driving instructor.