20th May 2026
There is a growing market in fake insurance policies being sold through social media, and the evidence is now very clear about who the main targets are and how the scams work.
The FCA, Insurance Fraud Bureau, Aviva, and multiple UK news outlets all confirm a sharp rise in what’s known as “ghost broking” — criminals selling bogus car‑insurance policies via Instagram, Snapchat, TikTok, Facebook, WhatsApp and Telegram.
What the scam actually is
Criminals pose as cheap insurance brokers and sell:
Completely fake policies, or
Policies bought using falsified details, or
Policies that are cancelled shortly after purchase
Victims believe they are insured — but they are not, and only discover this after a crash, police stop, or ANPR check.
Driving uninsured leads to fines, points, vehicle seizure, and prosecution.
Who the Main Targets Are
The data is unambiguous:
The primary victims are young drivers aged 17–25.
Why?
Cost‑of‑living pressure
Young drivers face the highest insurance premiums in the UK.
49% have bought insurance through social media or messaging apps.
15% say they struggle to afford insurance at all.
This makes “too‑good‑to‑be‑true” offers extremely tempting.
Lower confidence spotting scams
39% of young drivers say they are not confident in identifying a fake policy.
High trust in social media
45% of young people say they generally trust products bought through social platforms.
Lack of experience buying insurance
New drivers and students often don’t know what a legitimate broker looks like.
Criminals exploit this gap.
Social‑media‑first behaviour
Young drivers are more likely to:
Respond to DMs
Buy through messaging apps
Trust influencers
Share screenshots instead of checking official documents
This is exactly where ghost brokers operate.
Are other groups targeted?
Yes — but far less frequently.
Secondary targets include:
Students (especially international students unfamiliar with UK insurance rules)
Low‑income drivers looking for “cheap deals”
Drivers with previous claims or points who face higher premiums
People with limited English, who may not understand policy wording
But the core market for scammers remains young UK drivers, because they are:
Price‑sensitive
Social‑media‑active
Less experienced
More trusting of online offers
How big is the problem?
The scale is growing fast:
52% increase in ghost‑broking activity (2022–2024) — Insurance Fraud Bureau
22% surge in cases since 2023 — Aviva
The FCA has launched a national campaign because the problem is now considered a major financial‑crime threat.
Why social media is the perfect hunting ground
Ghost brokers use:
Instagram Stories
Snapchat ads
TikTok videos
WhatsApp groups
Telegram channels
Facebook Marketplace
They offer:
“Cheap insurance for young drivers”
“No deposit policies”
“Instant cover note — DM me”
“We can beat any quote”
These are classic red flags.
There is a thriving black‑market in fake insurance policies sold through social media.
And the main targets are young drivers aged 17–25, especially those struggling with high premiums and tempted by cheap offers.
This is now one of the fastest‑growing fraud types in the UK, with a documented surge in cases and clear evidence that scammers are exploiting cost‑of‑living pressures and social‑media habits.
How to Spot Fake Insurance — A Simple Checklist
1. The price looks too good to be true
If the quote is dramatically cheaper than comparison sites, it’s almost always a scam.
Ghost brokers lure victims with “£50 deposit”, “instant cover”, or “half‑price insurance”.
2. The seller contacts you through social media or messaging apps
Legitimate insurers do not sell policies through:
Instagram DMs
Snapchat
TikTok
WhatsApp
Telegram
Facebook Marketplace
If the “broker” wants to chat only by DM, walk away.
3. They refuse to speak on the phone or give a landline number
Ghost brokers avoid calls because they don’t want their identity recorded.
A real broker will happily speak on the phone and provide a verifiable office number.
4. They won’t give you their FCA registration number
Every legitimate UK insurer or broker must be authorised by the Financial Conduct Authority (FCA).
If they dodge the question or give a number that doesn’t match the FCA register, it’s a scam.
5. They ask for payment by bank transfer, PayPal Friends & Family, or cash
Real insurers use:
Direct debit
Card payments
Secure online portals
Scammers use:
Bank transfer
Cash
PayPal F&F
Revolut
Monzo requests
These methods are chosen because you cannot get your money back.
6. You never receive proper policy documents
Ghost brokers often send:
Screenshots
Edited PDFs
Fake “cover notes”
Documents with mismatched fonts or spelling errors
A real insurer sends a full policy schedule, certificate, and terms & conditions.
7. Your details on the policy are wrong — on purpose
Scammers often falsify:
Age
Address
Occupation
No‑claims history
Car storage location
This makes the policy invalid even if it was bought from a real insurer.
8. The policy suddenly “disappears” from the insurer’s system
Ghost brokers sometimes buy a real policy, send you the documents, then cancel it and pocket the refund.
Victims only discover this after a police stop or accident.
9. The seller pressures you to buy immediately
Scammers use urgency:
“Offer ends today”
“Only two slots left”
“I can get you on cover in 10 minutes”
Real insurers don’t behave like this.
10. The broker refuses to tell you which insurer the policy is with
If they won’t name the insurer, it’s because:
The insurer doesn’t exist
The policy doesn’t exist
They don’t want you checking the details
Walk away.