When it comes to insurance, there are a few scams out there that you need to be aware of. One of the most common is ghost brokers.
Rodney Bruce Van der Puye, a Canadian citizen from Southwark, was sentenced to 21 months in jail, a two-year suspension, and 180 hours of unpaid work last week.
34-year-old Van der Puye operated a ghost broker business by fraudulently obtaining insurance policies using the names of his mother and other unwitting people. He was identified after the Insurance Fraud Bureau (IFB) discovered some 28 suspicious insurance plans linked to his name.
What is a ghost broker?
Ghost brokers promise cheap insurance deals that seem too good to be true – and that’s because they usually are. These fraudulent brokers will often use fake or stolen documents to set up the policy, meaning that if you have to make a claim, you’re likely to be left high and dry.
According to a new report by consumer group Which?, ghost broker scams cost the average victim £1,950. To test how prevalent ghost broking is, Which? also did a quick search of “cheap car insurance” on Facebook, Instagram and TikTok and found that more than half of profiles offering quotes and coverage to UK drivers have no authorisation from the Financial Conduct Authority.
What other insurance scams should you know about?
Another scam to watch out for is fronting. This is where a parent or guardian pretends to be the main driver on a policy in order to get a cheaper premium, when in reality it is the young person who will be behind the wheel most of the time. This is not only illegal, but it could also invalidate your insurance.
Then there are the more general scams that exist in any industry, such as identity theft or email phishing. These can be harder to spot, but if you’re ever asked for personal or financial information out of the blue, it’s best to err on the side of caution and not give anything away.
Phishing scams in insurance usually take the form of an email or text message that looks like it’s from your insurer, asking you to update your personal details or make a payment. But if you hover over the sender’s name, you might see that the address doesn’t match up with your insurer’s website. Always go directly to their website to check any messages before doing anything.
How can you protect yourself from insurance scams?
The best way to protect yourself from any kind of scam is to be aware of the signs and to know what to look out for. If something sounds too good to be true, it probably is. Be suspicious of unsolicited calls, emails or messages, even if they seem to be from a company you know. And never give away personal or financial information unless you’re absolutely sure who you’re dealing with.
