High riskOnline Shopping Scams

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.

What this scam usually looks like

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.

Example message pattern

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.

Red flags to watch for

  • 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 to do

  • 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

If you already clicked or replied

  • 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

What not to do

  • 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

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Frequently asked 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

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.