High riskOnline Shopping

Ghost Broking Scam

In this scam, a 'broker' sells cheap car insurance that is fake, forged, or taken out with false details, so the policy is invalid; you are uninsured, lose your premium, and risk penalties if you drive.

Quick verdict

Risk level
High risk
Scam type
Fake insurance (ghost broking)
Main red flag
Very cheap car insurance from a broker on social media or via DMs, paid by transfer.
What to do first
Verify the policy directly with the insurer and use authorised brokers only.

How this scam works

In this scam, a 'broker' sells cheap car insurance that is fake, forged, or taken out with false details, so the policy is invalid; you are uninsured, lose your premium, and risk penalties if you drive.

Online shopping scams use fake stores, unbelievable deals, and counterfeit or never-delivered goods to take your money and card details. Fake sites often surface through ads and social media and pressure you with limited-time offers.

In short, the giveaway is usually simple: Very cheap car insurance from a broker on social media or via DMs, paid by transfer. Verify the policy directly with the insurer and use authorised brokers only.

Scammers rotate tactics constantly, the same operation may also run the Insurance Renewal Email Scam and the Pet Insurance Scam. See the full Online Shopping Scams guides hub, or test a suspicious message with the scam checker.

How to spot this scam

  • Car insurance far cheaper than normal quotes
  • A broker operating via social media or DMs
  • Payment by bank transfer to an individual
  • Vague or missing policy documents
  • Reluctance to deal through the insurer directly

What the message looks like

Example pattern, not a real report
Example pattern: 'Cheap car insurance, any driver, instant cover! Pay by transfer and I'll sort your policy.' The policy is fake or invalid.

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

What gives it away: Very cheap car insurance from a broker on social media or via DMs, paid by transfer.

The scale of it

Top category
online shopping is one of the most-reported fraud categories to the FTC
Source: US Federal Trade Commission
$1.4B
reported lost to fraud that started on social media in 2023, where many fake shops advertise
Source: US Federal Trade Commission

How to protect yourself

  • Verify any policy directly with the named insurer
  • Use authorised, verifiable brokers or buy direct
  • Be wary of prices far below normal quotes
  • Check the broker on your regulator's register

Already responded? Do this now

  • If you suspect a fake policy, confirm directly with the insurer
  • Arrange genuine cover immediately, as you may be uninsured
  • Report the ghost broker to your insurance regulator
  • Contact your bank about disputing the payment

Mistakes to avoid

  • Do not buy insurance from social media brokers via transfer
  • Do not assume cheap cover is genuine
  • Do not drive on a policy you cannot verify

Related scams to know

Medium risk Email

Insurance Renewal Email Scam

This scam emails a fake insurance renewal notice, claim update, or refund, impersonating your insurer and linking to a page that collects your card, policy, and personal details.

Created by Scam or Safe Editorial Team
Medium risk Online Shopping

Pet Insurance Scam

In this scam, a fake or unlicensed pet insurer offers cheap, comprehensive cover, takes your premiums and card details, then denies all claims, disappears, or never provided real cover at all.

Created by Scam or Safe Editorial Team
High risk Online Shopping

Fake Online Store Scam

This scam sets up a convincing but fake store with very low prices, takes payment, and delivers nothing, a counterfeit, or a cheap substitute.

Created by Scam or Safe Editorial Team

Common questions

What is ghost broking?
It is selling fake, forged, or invalid car insurance, often cheaply via social media, leaving you uninsured and out of pocket, with penalties if you drive.
How do I check my policy is genuine?
Confirm it directly with the named insurer, use authorised brokers or buy direct, and check the broker on your regulator's register.
I think my insurance is fake. What now?
Confirm with the insurer, arrange genuine cover immediately as you may be uninsured, report the ghost broker, and dispute the payment.
Why is cheap cover a warning sign?
Prices far below normal quotes, sold via DMs and paid by transfer, are classic ghost-broking signs. Verify before buying.

Last reviewed June 2026 · Written & reviewed by the

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.