UK FCA warns young drivers of ghost‑broking insurance scams

The Financial Conduct Authority (FCA) has issued a warning that criminal "ghost brokers" are selling fake car insurance policies to drivers aged 17‑25 through social‑media and messaging apps. A survey of 1,000 young motorists in the UK found that 49 % have purchased insurance via these channels, and 39 % do not feel confident spotting a bogus policy. Victims can be left uninsured, face legal penalties, fines or vehicle seizure, and may lose money when the bogus policy is cancelled shortly after purchase.

The FCA advises consumers to avoid deals that are only advertised online, verify a broker’s legitimacy using the FCA’s Firm Checker, and look for a genuine website, phone number and address. Graeme Reynolds, director of insurance at the FCA, stressed that “tight budgets make cheap offers tempting – and scammers take advantage of that.” The Association of British Insurers echoed the warning, calling the fraud a top industry priority.

Young drivers are encouraged to contact insurers directly to confirm legitimacy and to treat any offer that seems too good to be true with caution.