The Financial Conduct Authority (FCA) has issued a warning over the growing sale of fraudulent motor insurance through social media and messaging apps, a practice commonly described as ghost broking. The regulator says the scam is increasingly aimed at young and financially pressured motorists, who may unknowingly drive with invalid cover and expose themselves to prosecution. The warning follows figures pointing to a marked rise in such activity across popular digital platforms.
How ghost broking works
Ghost brokers pose as legitimate insurance sellers and offer motor policies that are, in reality, worthless. According to the FCA, the cover on offer may be entirely fictitious, obtained using manipulated customer details, or cancelled shortly after purchase without the driver's knowledge. In some cases fraudsters alter personal information, such as a customer's address, occupation or how a vehicle is used, in order to secure artificially low premiums. Others fabricate policy documents outright. Because the arrangements appear genuine at the point of sale, many motorists only discover that their insurance is invalid after being stopped by police or when attempting to make a claim following an accident.
Young drivers most exposed
The FCA highlighted that younger motorists are particularly vulnerable to these offers, which are frequently promoted on platforms including Instagram, Facebook, Snapchat and WhatsApp. Research cited alongside the warning indicated that 49 percent of drivers aged 17 to 25 had bought insurance through social media or messaging apps, while 39 percent of young drivers said they were not confident in their ability to identify a fraudulent policy. Graeme Reynolds, director of insurance at the FCA, observed that financial pressure was making younger drivers increasingly susceptible to fraudulent offers promoted online, a combination that leaves them both more likely to seek cheaper cover and less equipped to spot a scam.
A rising trend
Industry data suggests the problem is expanding. The Insurance Fraud Bureau reported a 52 percent increase in ghost broking activity between 2022 and 2024, and the insurer Aviva recorded a 22 percent rise in cases since 2023. The FCA warned that the consequences for drivers caught with invalid insurance can be severe, including licence points, fines, seizure of the vehicle and disqualification. Motorists may also be held personally liable for the costs arising from any accident, a financial exposure that can far exceed the apparent saving offered by a fraudulent policy.
What drivers should watch for
The regulator encouraged consumers to treat unusually cheap cover advertised on social media with caution and to verify that any seller is properly authorised before parting with money or personal information. Buyers are advised to be wary of offers made through informal messaging channels and of any request to alter personal details in order to lower a premium. Where cover has been arranged, drivers can confirm that a policy is genuine directly with the insurer named on their documents.
The warning reflects a wider concern about how financial products are increasingly marketed and sold through informal online channels that fall outside traditional regulatory oversight. As social media becomes a routine route to purchasing services, regulators face the challenge of countering fraud that adapts quickly to new platforms while protecting consumers who may not distinguish authorised firms from opportunistic sellers. For the insurance sector, the trend underlines the value of clear consumer education and robust verification measures to preserve trust in a market where the true cost of a fake policy may only surface at the worst possible moment.
