Car insurance deals are likely to be advertised on social media sites this weekend but experts at the Insurance Fraud Bureau (IFB) have warned that not all deals may be as good as they first seem. Drivers may be caught out by Ghost Brokers who pose as real insurance firms before offering fake agreements which can lead to devastating consequences.
The City of London Insurance Fraud Enforcement Department has also urged drivers to take caution this Black Friday.
They urge customers to check the broker is genuine through the Financial Conduct Authority (FCA) or British Insurance Brokers’ Association (BIBA).
Motorists should also contact the insurance company directly to verify the broker’s details.
The IFB has warned that the percentage of investigations into the issue has doubled in recent years.
The Association of British Insurers (ABI) has recently revealed that over 2,000 dishonest insurance applications are being detected every day with car insurance the most common.
Detective Superintendent Peter Ratcliffe, head of City of London Police’s Economic Crime Funded Units has previously warned of the dangers motorists face.
He said: “Fraudsters will use any opportunity to try and steal money from the public, including the exploitation of tragic events such as the current worldwide COVID-19 pandemic.
“We work effectively with the IFB, ABI and insurers to tackle insurance fraud, and our unit has continued the fight against criminals, despite the challenges posed by coronavirus.
“Our industry partners provide us with valuable intelligence to help us identify suspected fraudsters and carry out this enforcement activity, but we also rely on information from the public.
“As such, it’s vital people report to IFB’s Cheatline when they have information about a suspected insurance fraud or fraudster.”