Auto insurance scams hit Facebook: Motorists warned to watch out for insurance fraud on social media
Motorists are being warned to watch out for insurance fraud as the number of fake policies for sale is skyrocketing.
So-called ‘ghost brokers’ pose as online insurance dealers to sell fake policies to motorists.
They usually lure victims through the social media platforms Facebook and Instagram and entice them with the promise of low bounties.
Insurance scam: So-called ghost brokers usually lure victims through social media platforms such as Facebook and Instagram, enticing them with the promise of low premiums
More than 55,000 fraudulent auto insurance applications sold by ghost brokers were referred to law enforcement by insurance company LV in the past year, according to the Insurance Fraud Bureau (IFB). That’s more than double the number eradicated in the past 12 months.
You can check if an insurer or broker is regulated by the Financial Conduct Authority so you don’t get caught up in a worthless policy. Go to: register.fca.org.uk.
Ben Fletcher, head of financial crime at LV, has called for stricter regulations on social media to further protect people from being approached by ghost brokers or having their ads shown.
There are common red flags to look out for when buying a policy. As usual, if the price is too good to be true, it probably is.
Be wary if a broker asks you to pay high administration fees into a separate bank account. And LV warns that you should never meet people who offer to deliver your certificate of insurance to a parking lot for cash.
j.beard@dailymail.co.uk