Half (49%) of young
drivers have bought insurance through social
media or messaging apps, new research
reveals. With 4 in 10 (39%) unconfident
in spotting the signs of a fake policy, thousands
could be paying for cover
that doesn't exist.
The Financial Conduct Authority
(FCA) is
warning 17–25 year-old drivers about "ghost
broking" scams where criminals
sell bogus insurance policies through social media and messaging
platforms. Ghost brokers pose as legitimate insurance sellers but
offer cheap rates. The policies they sell are either entirely
fake, are invalid because they falsify details to bring the price
down,
or are cancelled shortly after
purchase. Victims are left unknowingly uninsured and at risk of
prosecution, fines and even having their car seized.
Almost half of those polled (45%) said
they generally trust products or services bought through social
media. Young drivers may also be at greater risk due to cost of
living pressures – with 1 in 7 (15%) saying they find it
difficult to fit insurance into their monthly budget.
To avoid being taken for a ride, the
FCA is urging young drivers to:
-
Be wary of offers that sound too
good to be true
-
Avoid deals only available through
social media and messaging platforms. Genuine sellers should
have a legitimate website, phone number and address
-
Use FCA Firm Checker to confirm the
firm is authorised. Drivers should check the firm's
contact details match those listed on Firm Checker to make sure
they are dealing with the genuine
firm.
Graeme Reynolds, director
of insurance at the FCA said:
“Tight budgets make cheap offers
tempting – and scammers take advantage of
that.Don't get ghosted by a
policy that doesn't exist. Check the FCA Firm Checker before you
buy, because driving uninsured could cost you far more than any
premium.”
The FCA is working with social
media influencers to warn young drivers about the growing threat
of ghost broking.
Notes to
editors
-
Survey conducted
by Kantar on 24 Apr-1 May 2026 among 1000 UK drivers
aged 17-25
-
The Insurance Fraud Bureau and
Aviva both report an
increase in ghost broking. The Insurance Fraud Bureau
found a 52% increase in ghost broking activity from 2022-2024
and Aviva saw a 22% surge in cases since 2023
-
Driving without valid insurance is a
criminal offence in the UK and can result in a fixed penalty,
points on a licence, or disqualification
-
The campaign supports the
Government's Motor Insurance Taskforce goals to tackle
uninsured driving, fraud and crime
-
Fighting financial crime is a
priority for the FCA, as part of its 5-year
strategy.
