Ghost broking: The hidden threat to your insurance

What is ghost broking?

Ghost broking is a form of insurance fraud in which a scammer poses as a legitimate insurance broker to sell policies that are either entirely fake or fundamentally invalid. Unlike other insurance scams where the insurer is the primary victim, ghost broking most often leaves ordinary drivers without cover they believed was in place – frequently discovering the truth only when they are stopped by police or attempt to make a claim.

The term “ghost broker” refers to the way these fraudsters operate like phantoms: they take your money and vanish, leaving behind worthless documentation and a false sense of security. While ghost broking has long been associated with motor insurance, it increasingly affects other personal lines products.

How it works

Ghost brokers typically operate in one or more of the following ways:

The scale of the problem

Ghost broking is no longer a niche concern – it has become one of the fastest-growing forms of fraud in the UK insurance market and the data makes for sobering reading.

Reports to the police. According to the Home Office, reports of insurance broker fraud made to Action Fraud rose 32% to 775 in the year to September 2024, and by a further 12% to 870 in the year to September 2025. (Action Fraud was replaced by Report Fraud in December 2025.) Earlier calendar-year figures showed 817 ghost broking reports in 2024 with an average victim loss of £2,207, and social media car insurance scams nearly doubling from 90 reports in 2023 to 179 in 2024, with £185,369 lost through that channel alone.

Industry intelligence. The IFB detected a 52% rise in ghost broking activity between 2022 and 2024, and has reported that ghost broking accounts for roughly one-third of its fraud investigations. It also found 115,000 fraudulent motor policies in 2023–2024, most of them linked to ghost brokers. Allianz says ghost broking accounted for around £15 million of its policy fraud in 2025.

The wider fraud picture. The Association of British Insurers (ABI) reports that insurers detected £1.34 billion of fraudulent claims in 2025, up 14% from £1.18 billion in 2024. The number of detected cases fell 2.7% to 93,900, but the average fraudulent claim rose to £14,300, the second highest on record. Motor accounted for 55% of detected cases (51,900 claims worth £625 million), and insurers also stopped fraudulent applications worth £1.8 billion. On average, more than 250 fraudulent claims are detected every day. These figures cover all types of insurance claims fraud, not ghost broking alone, but they show the pressure the industry is under.

Young drivers bear the heaviest burden. The Financial Conduct Authority (FCA) found that 49% of young drivers have bought insurance through social media or messaging apps, and 39% say they are not confident they could spot a fake policy. Aviva reports that ghost broking cases it detected are up 22% over two years, with drivers aged 17–25 the main target and an average loss of around £2,000 (about £1,700 in premium plus around £300 in extra fees). Of young drivers who bought a fake policy via social media, 84% had problems, including declined claims, falsified policy details or being stopped by police, and one in six said they became victims of identity theft. Aviva detected one suspected ghost broker who made around £150,000 selling fake policies.

Your identity is the second target. Data from Synectics Solutions’ National SIRA consortium shows a 93% rise over the past year in victims of impersonation fraud whose identities were used in ghost-brokered policies. Some of that increase reflects better detection by insurers. The same data shows 66% of stolen identities linked to ghost broking are re-used, so a single fake policy can be the start of wider fraud.

Enforcement is stepping up. The City of London Police’s Insurance Fraud Enforcement Department (IFED) led a nationwide crackdown in May 2025, resulting in arrests and Account Forfeiture Orders worth £48,195. Across earlier enforcement activity, 438 arrests were made and about £19 million in assets seized. In December 2025, the cross-government Motor Insurance Taskforce published measures to tackle uninsured driving, fraud and ghost broking. In 2026, Aviva reported that its ghost broking cease and desist notices have doubled and its website takedowns have risen more than eightfold compared with 2025, and it has backed Ofcom’s proposed Fraudulent Advertising Codes of Practice. Despite this, awareness remains low: an IFB-commissioned YouGov survey found only 17% of the public had heard of ghost broking.

How to spot a ghost broker

The good news is that ghost brokers tend to leave tell-tale signs. Knowing what to look for can save you from financial loss, penalty points and the stress of driving uninsured.

The consequences can be severe

Many victims of ghost broking are entirely unaware they are uninsured until the moment it matters most. The legal and financial consequences are the same as for any uninsured driver – the fact that you were defrauded offers no automatic protection under the road traffic laws.

Beyond the immediate legal risk, victims may also find their personal data – name, address, date of birth, vehicle details – traded or re-used by criminals, leading to identity fraud and further financial exposure.

How to buy insurance safely

The most effective protection is straightforward: always purchase insurance through a broker or insurer that is registered with the Financial Conduct Authority. Use the FCA Register at register.fca.org.uk to verify any firm before you pay. Once you have a policy, call the insurer directly on a number from their official website to confirm it exists.

If you believe you have been targeted or already hold a suspect policy, report it to report Fraud (0300 123 2040) at reportfraud.police.uk and to the IFB’s confidential CheatLine (0800 422 0421). Acting quickly reduces the risk of further harm – and ensures the fraudsters are pursued.

At QMT Commercial Insurance Brokers, every policy we arrange is placed with FCA-authorised insurers, and every client receives written confirmation they can verify independently. If you are unsure whether your current cover is legitimate – or simply want the reassurance of dealing with a regulated broker – our team is here to help.

Not sure your policy is genuine?

Our team can check your existing cover and arrange legitimate, FCA-backed insurance to meet your commercial needs and budget – with full documentation you can verify.

Talk to us today.

Sources

• Association of British Insurers (ABI) – 2025 fraud data (6 October 2026): £1.34bn detected, 93,900 cases, £14,300 average claim: Insurance Times
• UK Parliament written answer, Home Office (UIN 16107, 6 July 2026) – insurance broker fraud reports of 775 (year to Sept 2024) and 870 (year to Sept 2025); Motor Insurance Taskforce, Dec 2025: questions-statements.parliament.uk
• Aviva (Nov 2025) – ghost broking up 22% in two years; £2,000 average loss; 84% of young victims affected; £150,000 suspected broker: aviva.com
• Insurance Business (2026) – Aviva cease and desist notices doubled, website takedowns up more than eightfold, Ofcom consultation; FCA/Action Fraud figures: insurancebusinessmag.com
• Insurance Post, sponsored by Synectics Solutions (21 Sept 2026) – Allianz £15m; 93% rise in impersonation victims; 66% identity re-use; AI tools: postonline.co.uk
• FCA – young drivers and insurance bought via social media: fca.org.uk
• GOV.UK – Report Fraud replaces Action Fraud (4 Dec 2025): gov.uk
• Insurance Fraud Bureau (IFB) / City of London Police IFED – 52% rise in ghost broking 2022–2024; crackdown results (June 2025): cityoflondon.police.uk
• Action Fraud – 817 reports of ghost broking in 2024, average loss £2,207: Insurance Age, Feb 2025
• Tempcover / Action Fraud FOI – social media scams doubled to 179 reports in 2024; losses £185,369: Insurance Times, Mar 2025
• IFB / YouGov – one-third of IFB investigations; 17% awareness; 438 arrests; £19m assets seized: Kennedys Law, Aug 2024
• IFB – 115,000 fraudulent motor policies detected 2023–2024: Insurance Age, May 2025