20,000 plus drivers defrauded by 'ghost brokers'

More than 20,000 motorists could be unknowingly driving without car insurance cover after purchasing fraudulent or fake policies from 'ghost brokers'.

According to BBC News, the City of London police have pledged to "tackle the problem head on" after preliminary investigations indicated that some 20,000 motorists could have been sold fraudulent or fake policies by career criminals and opportunistic conmen.

Steve Gaywood, an insurance expert, has expressed concern that con-men are targeting drivers who are finding it increasingly difficult to stay-on road as petrol prices, maintenance costs and depreciation levels continue to rise at near triple the rate of inflation.

Gaywood said: "We all know car insurance premiums have risen in the last couple of years, and for some motorists it is difficult to afford or find.

"It seems that some unscrupulous individuals are using this as a hook to con people into buying insurance that isn't valid."

Gaywood and other insurance experts have encouraged car owners to be wary of deals which seem too good to be true, and to only purchase car insurance from fully accredited and well known brokers.

Common scams to be wary of include purchasing insurance at a 'discount' from a conman posing to work at an insurance broking firm.

Some car owners have fallen victim to unscrupulous brokers who have misrepresented said motorists to insurance companies to achieve discounted premiums, lying about an individual's age, no claims history and occupation to achieve cheaper - though fraudulent - cover.

Detective Superintendent Bob Wishart of the City of London police said: "Ghost broking is an emerging threat within the insurance fraud arena, costing the industry millions of pounds, leaving companies exposed and meaning thousands of people are unknowingly uninsured.

"This new criminality is particularly prevalent in motor insurance, with fraudsters looking to capitalise on what is a compulsory and sometimes costly product.

"We will soon have a new police unit specifically to tackle insurance fraud. Ghost broking is a growing part of this problem and tackling it head-on will be a priority."

Fri, 25 Nov 2011 06:12:00 GMT