Ghost broking surges 22% in two years – how can we protect young drivers?

Ghost broking, where fraudsters pose as legitimate insurance agents illegally selling fake or invalid motor insurance to young drivers, is up more than 4% year on year and up 22% over the last two years, according to our new research.¹

The primary target of ghost brokers are young drivers aged 17 – 25 and our figures show that they’re losing an average of £2,000 when they buy fake car insurance policies from ghost brokers. This includes both the average premium paid to a ghost broker (£1,700) and the extra fees (£300) charged by ghost brokers selling these fraudulent policies.³

To highlight the scale of this issue, one suspected ghost broker we detected made around £150,000 selling fake car insurance to young drivers.
 

The price of fake cover

Nearly one in three (31%) young drivers have purchased car insurance via social media platforms, putting them at risk of being duped by a ghost broker, based on our survey of 2,000 drivers aged 17-25.² Buying a fake or invalid policy puts them at risk of having their car seized, facing an unlimited fine and receiving a driving ban.

84% of young drivers who bought a fake car insurance policy on social media experienced problems. Among these,

• 24% discovered their policy had been set up with incorrect details such as age or address
• 24% had a claim declined
• 19% reported the seller disappeared
• 16% were stopped by police
• 16% became victims of identity theft.

These experiences may explain why 68% of young drivers said they would be suspicious of anyone offering access to cheap car insurance on social media.
 

Latest ghost broking trend

We’ve identified a sharp rise in ghost broking scams using fake, professional-looking websites that impersonate legitimate insurers. These portals are designed to appear credible, capturing young drivers’ personal details, accepting payments and issuing counterfeit insurance documents. This tactic is particularly effective among young and inexperienced drivers searching for affordable cover on social media platforms. We want to warn drivers that these scams don’t just leave victims uninsured, they also expose them to identity fraud, as criminals frequently sell stolen personal data on the dark web.

Unlike traditional ghost broking, where the ghost broker will alter the policyholder’s details, such as age and address, to get what the customer believes to be a cheaper, legitimate policy from an insurer, this new method bypasses legitimate insurers entirely. Ghost brokers are increasingly creating policies that are completely fake, meaning insurers have no record of the transaction. This makes proactive detection difficult – in this situation, insurers typically learn of the fraud only after victims report issues, such as being stopped by police for driving without insurance or after an accident. By then, victims discover their policy never existed and their personal details may already be circulating on illicit platforms.

“Ghost broking is a fast-growing criminal enterprise that targets young drivers on social media sites. These fraudsters exploit social media to sell worthless insurance, leaving victims thousands of pounds out of pocket, driving without insurance and at risk of prosecution. They could also potentially be victims of identity or banking fraud in the future. The scale of the problem is concerning – and it’s getting worse. We’re calling for tougher enforcement, stronger penalties and greater awareness of ghost broking to protect young drivers. Our message to young drivers is simple, before buying insurance on social media, always check the seller is genuine before you pay.” Owen Morris, CEO, UK Personal Lines, Aviva.

Three-point plan to tackle ghost broking

We’ve set up proposals to end this scam, building on existing regulatory and legislative frameworks and working with industry peers, regulators, consumer groups and victims to help clamp down on this practice.

Our recommendations:

• Better enforcement
  • Social media platforms should only allow FCA-verified accounts to advertise insurance. This is in line with the Online Safety Act, which sets out a duty on service providers to take measures to prevent users from encountering fraudulent advertisements. Likewise, FCA guidance states that promotions must be fair, clear, and not misleading. Stronger enforcement of these rules would prevent ghost brokers from advertising access to cheap insurance on social media.
  • Platforms must share suspicious activity with enforcement agencies such as the Insurance Fraud Enforcement Department (IFED), Action Fraud and the Insurance Fraud Bureau (IFB). 

• Tougher penalties
  • Work closely with law enforcement to disrupt this harmful practice and make sure that punishments reflect the harm caused to victims, including the use of custodial sentences. 
• Greater awareness
  • Update the driving test to teach young drivers how to buy genuine insurance and avoid scams.
  • Ring-fence proceeds of crime to support victims and reimburse losses where possible.
     

Young drivers are very supportive of our proposed measures:

• 66% agree that social media platforms should only use FCA verified accounts for insurance ads.²
• 70% say an in-app warning on social media such as “only buy from FCA-verified sellers”, would make them less likely to buy insurance on social media.²
• 67% believe there should be stronger criminal penalties for organised ghost broking.²
• 61% agree that the driving test should introduce a question on buying insurance safely.²

_{1. Ghost broking detection data is based on Aviva’s analysis of new and renewing motor insurance customers.}

_{2. The research was conducted by Censuswide, among a sample of 2,001 young drivers in the UK (defined as those aged 17-25) who have a full UK driving licence and are insured to drive. The data was collected between 9.10.2025 - 17.10.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.}

_{3. Average ghost broking premium based on the premium paid to Aviva on detected ghost brokered policies divided by the number of detected ghost brokered policies. Fee data based on detected policies where Aviva recorded the fee charged to the customer by the ghost broker.}

_{4. Aviva’s policy fraud team linked more than 550 policies to a single suspected ghost broker, who charged between £250 and £300 fee on top of the premium.}