Direct Line Insurance – Insurance Fraud Bureau's Ghostbroking campaign

4 min read

Stuart Stevens, Head of Commercial and Policy Fraud, Direct Line responded: “Social media is used by ghost brokers to sell invalid insurance policies to the general public and we work closely with these platforms to identify criminals engaged in this illegal activity. Innocent consumers could find themselves a victim of fraud, lose money and potentially face criminal charges if they fall victim to ghost brokers. Consumers should also be aware that this type of fraudulent activity can add at least £50 to the insurance premiums of honest customers.

“At Direct Line, we have stringent processes in place to identify fraudulent insurance applications and anyone we suspect of operating as a ghost broker will be reported immediately to the authorities by our internal teams.

“We’re proud to be supporting the IFB in their continued bid to stamp down on ghost broking and to stop more consumers becoming a victim of this crime.”

Advice for consumers:

  • The policy holder is responsible for the information provided in their application, if the information given is not accurate, their insurance will be invalid, and this could impact their ability to secure cover in the future.
  • Only purchase motor insurance from reputable sources.
  • Official social media accounts on major platforms have a blue tick, so avoid those accounts that don’t have one.
  • Steer clear, if a ‘Broker’ only uses a mobile number, where WhatsApp is the method of communication or has no business premises or uses personal sounding email address (i.e. no company affiliation).
  • Contact the insurer directly if going through a broker to check if they are authorised to sell policies on the company’s behalf or check them out at biba.org.uk or register.fca.org.uk.
  • Adverts promising insurance for a fixed price without having any details of your personal situation or the vehicle you are seeking to insure are likely to be fraudulent.
  • Reviews – if these feature screengrabs of text messages, they are extremely likely to be fake.
  • Check the language – if communications include text such as “you can’t believe how cheap it is bro” and “totally legit not a scam mate” – it probably is fraudulent, especially if there are clear and apparent grammar and spelling errors.
  • Intuition – ask yourself if the deal appears ‘too good to be true’, does the website or social media page appear reputable?

How to check you’re not a victim:

·        Check if the Broker is registered with FCA and/or BIBA

·        Check your details with the insurer you have been informed you are insured with

·        Check if your car is insured online via www.askMID.com

What a consumer should do if they think it’s a scam:

·        Report to Action Fraud: 0300 123 2040

·        Contact Insurance Fraud Bureau (IFB) Cheatline – 0800 422 0421

·        Report it to the social media platform

For further information please contact:

Direct Line Group:

Chelsey Wheeler 

Deputy Head of News and Issues 

Email: [email protected]

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel and pet insurance cover direct to customers by phone or on-line.

Direct Line general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line and UK Insurance limited are both part of Direct Line Insurance Group plc.