Police have warned the public about ghost broker social media fraud tricks amid a spate of unsuspecting customers being caught out. Ghost brokers, tricksters who use the internet to set up fake policy documents or take premium money online before disappearing, are operating on social media platforms to give themselves a new level of credibility, police say. Action Fraud has reported several cases of people responding to ghost broker social media tricks, and now Devon and Cornwall Police have issued an alert, Devon Live reports. “In other cases, insurance has initially been purchased on behalf of the victim only to be immediately cancelled with the insurer; this means that bogus brokers can forward voided paperwork or email concerning insurance cover to the unsuspecting victim and pocket any refunded insurance fees,” read the alert issued by Devon and Cornwall Police. Customers are being urged to contact the insurer directly if they have suspicions about a ghost broker social media presence or check the FCA website to see if the brokers are authorised. In April, a ghost broker was sentenced for a defrauding LV= using fake car insurance policies. “If a broker claims to be accredited with a good practice organisation, don’t just take their word for it,” it added. “Be sure to contact the respective organisation directly and check their database or make an enquiry.” If you are senior level person involved in claims at an insurer or Top 50 brokers, and would like an invite to the Insurance Times and Carpenters all-powerful Fraud Charter, contact Mandy O’Connor mandy.oconnor@insurancetimes.co.uk or telephone 0207 618 3470
Police have warned the public about fake insurance broker scams on social media. Ghost brokers set up fake policy documents or take premium money online before disappearing. Devon and the Financial Conduct Authority issued a warning after several cases of people responding to ghost brokers on social media, which they use to give themselves added credibility. Customers are urged to contact insurers directly if they are concerned about a broker's social media presence or check Cornwall Police website to see if the broker is registered.