Man from east Midlands speaks out after being caught up in a ‘ghost broking’ scam
Motorists are being warned to stay alert following news that a new car insurance scam is doing the rounds here in the UK.
The scam has come to light after a man from the east Midlands reported his story in the hope other motorists won’t be caught out by one of these ‘ghost broking’ scams which he himself was caught up in.
Mr Ali was sent over 130 insurance documents for policies he hadn’t taken out. They were all sent to his address but each one had a different person named on it. Each envelope contained everything you’d expect to receive when you take out a new car insurance policy.
Churchill insurance company have now accepted that Mr Ali’s home address had been caught up in such a scam and have now begun an investigation.
According to a Churchill spokeswoman, Mr Ali seems to have been the victim of a ‘ghost broking’ scam, which is a serious crime that leaves those living at a targeted address in a distressed state.
Ghost broking is an extremely serious crime which a lot of motorists in the UK have no real awareness of. These type of scams target people without their knowledge in an attempt to cheat people out of their hard earned cash.
What are Ghost Brokers?
Here’s an explanation from the UK’s Insurance Fraud Bureau:
Ghost brokers are fraudsters who sell motorists so called cheap car insurance deals, however they issue policies that aren’t worth the paper they’re written on.
The scam generally works in one of two ways:
Policies are bought from legitimate insurance companies using false information and then doctored before being sold on to customers. Fake policy documents designed to look like they have been issued by legitimate insurance companies are created and sold on to customers.
Buying a fake policy can have the same consequences as not having a policy:
Your car may be seized by police. You’ll pay a fixed penalty notice of £300. You’ll have to buy valid insurance & pay at least £150 to get your car back from the pound. You could be liable for any damage you cause while driving without insurance, which could include compensation if you injure someone.
Here’s how to beat the scammers:
Find a legitimate broker via the BIBA website and check that your insurance adviser is on the Financial Services Register. Beware of buying insurance policies from unusual sources such as social networks, newsagents or bars and pubs. Check your insurer is a Motor Insurers’ Bureau (MIB) member.
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