Fraud
Here at Aviva, we work closely with regulators and enforcement agencies to tackle fraud. While we’re tough on fraud, we also look out for our genuine customers. That’s why we’ve put checks in place to make sure our counter fraud practices don’t get in the way when you need us most.
How do you report a suspected fraud?
We all have a role to play to help stop insurance fraud. Please report all concerns of fraud to our counter fraud team or your Business Development Manager.
There are also two industry bodies that you can report fraud concerns to:
Pete Ward, Head of claims counter fraud
"Counter fraud will always have a sharp focus here at Aviva - we're committed as a business to ensuring that the cost of insurance fraud isn't passed on to our genuine customers. If you'd like to learn more about what we're doing as a business to tackle emerging threats, please don't hesitate to get in touch."
Watch our fraud videos
Transcript for video Claims Fraud Webinar 2024
Claims Fraud Webinar 2024
Transcript for video Counter Fraud Webinar
Counter Fraud Webinar
Transcript for video What is paid-ad spoofing and how are Aviva tackling this issue?
Transcript for video aviva_claims_&_counter_fraud (1080p)
aviva_claims_&_counter_fraud (1080p)
Transcript for video Commercial motor collision - Driver
Transcript for video Commercial motor collision - Business owner
Transcript for video Understanding Ghost Broking
Pete Ward: Hi Kat. It's great to be talking to you today to explore an issue which is very topical but also a real problem for the insurance industry and that's the malign practice of ghost broking. But for those watching that are unfamiliar with that term, are you able to explain what ghost broking means?
Kat Cunningham: So, ghost brokers are a scam whereby the fraudster acts as a insurance broker. They often target young drivers via social media with the intent to sell them an insurance policy, which is ultimately a worthless transaction as it's invalid. The big risk is the insured is driving without insurance, often unknown to them. Ghost brokers typically can act as lone individuals, or sometimes they are part of a wider, organised criminal activity and it can impact both personal lines and commercial insurance policies.
Pete Ward: Unfortunately, it's a real problem, isn't it Kat. So, whilst ghost broking has been around for some time, unfortunately, we are seeing a rise in this activity. You may be aware that we at Aviva, recently interviewed 2,000 young drivers around their shopping habits of buying car insurance via social media, and the results are both shocking and worrying. And our research shows that 30% of those young drivers confirmed that they had bought car insurance via social media. So, almost certainly all of those drivers will have dealt with a ghost broker and have invalid insurance. And 9 out of 10 of those drivers had reported issues with their insurance, for example, invalid details. When they had phoned their insurer to make a claim, they realised that they weren't insured, and in some instances, the young drivers had been pulled over by the police for driving without insurance. So, it's a real issue. But Kat, are you able to elaborate in terms of the type of activity of ghost broking that you and your team have seen in the last 12 months?
Kat Cunningham: Yeah, sadly, I can Pete. What we typically see is the use of stolen or compromised bank accounts or bank cards, and these are used to purchase multiple policies. We can see gross misrepresentation where, the details of use of address, policyholder details, driving history, have been misrepresented. We also see fake documents, proof of NCD or no claims discount. The other thing we see is identity theft. So, where a ghost broker has used clean identities or addresses, sometimes businesses, to set the policy up, and then afterwards they've added on the policyholder - the fraudster -as an additional driver.
Pete Ward: It really is shocking and unfortunately this practice can dilute the trust that our customers have in genuine insurance brokers. But are you able to elaborate Kat in terms of how customers can fall victim to ghost broking?
Kat Cunningham: Typically, what we see ghost brokers doing is setting up a completely fake policy and providing fake documents. We see them taking out policies and then cancelling them just after inception having paid no premium. We see fake no claims discount documents being provided and policies that have been grossly misrepresented and therefore worthless.
Pete Ward: It's really interesting, but it's also so worrying. Are you able to provide details of what the consequences and what the customer impacts of ghost broking are?
Kat Cunningham: The impacts can be devastating and in some cases, life-changing. When someone is the unknown victim of ghost broker, this can result should the worst happen, they could be fined, they could be convicted, a vehicle could be impounded. There's often links to wider payment card and identity fraud, which impacts a wider group of victims. The victim can often find they have paid the ghost broker a fee or thinking it was premium, and that is worthless because they don't have a valid policy. Victims are left uninsured in the event of a claim and that can result in losses and liabilities for them. And then there's the wider impact of our genuine customers, who end up picking up the tab as a result of increased premiums that everyone pays the price for, for fraudulent activity.
Pete Ward: Clearly, ghost broking remains a real issue and that's why it's great to have discussions like this so we can raise awareness of this practice. But more broadly Kat, you lead Aviva's fraud prevention capability when it comes to application fraud and I wondered if you were able to provide some examples of the types of fraud that you and the team are seeing in this space.
Kat Cunningham: Yes, so in 2023 we identified fraud on over 50,000 motor policy applications. This is up on 2022 by over 60% as we continue to invest and train and develop our capability to detect as much fraud as we possibly can. This is key for us at Aviva to ensure that we're protecting our genuine customers and keeping as much fraud as we possibly can off our books. So, as you know Pete, here at Aviva, we want to spread the awareness of ghost broking activity as much as we possibly can. Are there any practical tips and advice you can offer to those watching on how to avoid becoming a victim of a ghost broker?
Pete Ward: Good question. Our advice for anybody watching this, who knows a young driver who's looking for car insurance is that if a deal looks and feels too good to be true, then it probably is. We would also advise avoiding dealing with anybody who will only communicate with you on social media or messaging apps. And if anybody watching this believes that they've been victim of ghost broking or know somebody that has been victim of ghost broking, then please contact the Insurance Fraud Bureau, contact Action Fraud or alternatively, contact the insurer who you think you're insured with who can then take the appropriate steps to refer this to law enforcement.
Kat Cunningham: Spot on Pete. It's been really useful to have this discussion today, ghost broking is going to continue as an emerging threat, with the increased usage of AI - is something we're going to have to absolutely stay on top of in the future.
** End of video **
Types of fraud
What should you look out for? Here are a few examples of insurance fraud, but criminals are always finding new ways to commit this crime.
Claims Farming
Claims Farming companies often cold-call people known to have been involved in a road traffic collision. They want to find non-fault motor claims so they can encourage those involved in an accident to make a compensation claim. Once this has been agreed, they then sell on the "claim" to a solicitor for a fee. Over recent years the business model has evolved, such as posting misleading online adverts to encourage motorists to believe they're contacting their insurer for the support they need.
How can you help you clients?
- Educate clients about the personal risks of entering legally binding contracts which can potentially expose them to significant debt.
- Help clients to identify red flags such as unsolicited calls or emails, scripted introductions and rapid segues into the offer of services at no cost and a suggestion that personal injury should and is expected to be claimed.
Fronting
Fronting is where usually an older policyholder is named as the main driver or sole user of a vehicle to gain a lower risk rating, even though they aren't actually potentially using the vehicle. The named driver on the policy is the 'true' risk and owns the vehicle. Fronting can even involve Indemnity Theft, where a Ghost Broker has taken personal details of someone else to attract a reduced premium.
How can you spot Fronting?
- Obtain proof of identification for all drivers and the vehicle V5
Are there records of the vehicle, risk address, email address or telephone number linked to another person?
Does the voice appear to match their declared age?
Can they readily answer all questions asked of them?
Does the email address have an obvious connection to the named driver?
Who is paying for the policy?
Does the payment address match the policy address?
Is there evidence of other (multiple) quotes for the named driver?
Ghost Broking
Ghost Brokers are fraudsters who sell forged or invalid policies though social media or within a community, claiming to be able to secure cheap motor insurance policies. Ghost Brokers often prefer contact via WhatsApp, SnapChat or email and they'll request a fee for their service to secure the deal. Once they've received the fee, they'll often block the person to stop them from further contact.
How can you help your clients?
- Make your clients aware about the risk of Ghost Broking
- Encourage them to always know who they're speaking to and that their insurer or you aren't being impersonated
- Let them know we won't contact them via social media or ask them for any upfront service fees via bank transfer
Has your client been contacted by a Ghost Broker?
Obtain the following information from your client:
Proof of bank transfers for fees/services paid
Screenshots of WhatsApp messages
Details of telephone numbers, social media accounts and websites
Opportunistic fraud
This is where someone takes advantage of a situation to exaggerate a genuine loss or invents a fictitious claim. It's often impulsive and can be linked to financial hardship or coercion from third parties. Examples include claiming for a personal injury after a road accident that doesn't exist, claiming for pre-existing motor damage and claiming for additional items or damage on a household schedule of loss.
How can you spot opportunistic fraud?
- If a previous claim for similar loss has been reported or additional loss is claimed after first notification
What can you say to a client who you think might be making an opportunistic claim?
- Let your client know that we may require additional supporting evidence to validate their claim
- Tell them about consequences of submitting a false claim, including difficulty in obtaining future insurance cover and even a potential criminal record
Organised Fraud
From Ghost Broking to fraudulent claims, organised fraud is a serious threat to our industry. Cash for crash claims, misrepresented claims and overinflated claims can be carried out by an individual or group of people acting together to defraud insurers.
What should you consider?
- Thorough identification verification is the first line of defence
- Do the personal / vehicle details provided by a client partially match against other policy records held on file?
- Has the policyholder notified a previous claim to you?
- Is the vehicle or some other personal information provided by the policyholder subject of a previous claim notified to you by another party?
- Has the insured vehicle previously been declared a ‘total loss’ and if so, when?
- Has the policyholder previously cancelled insurance cover shortly after inception?
What do we do to fight fraud?
Our Counter Fraud Teams
Technology
Our fraud team includes a dedicated data science unit with a remit to develop in-house counter-fraud technologies. Our policy and claims fraud analytics evolve at pace with the capacity to review an ever-increasing number of data sets without impacting genuine customer journeys. This team have developed a wide range of additional fraud detection tools which further enhance efficient and effective processing of suspect claims and policies to speed up appropriate outcomes.
Industry Bodies
We work closely with industry partners to combat fraud across the sector. We're representatives on the General Insurance Fraud Committee. We also work closely with local police forces, the Insurance Fraud Enforcement Department (IFED) and the Insurance Fraud Bureau (IFB) for which we sit on the non-executive board.
The importance of early notification of loss
The sooner we find out about a motor incident, the sooner we can help. If we’re notified as soon as an incident happens, we’re able to act quickly to support both parties which enables us to manage the cost of the overall claim, as well as reduce opportunities for fraud.
Defence Excellence
We’ve invested in our ability to prevent, detect and respond to fraud, across both our personal and commercial insurance business.*
10,000+
claims repudiated for fraud
6,000+
hours of counter-fraud training delivered to our staff
400+
bodily injury claims defended at trial
£5.7m
from organised crash for cash claims denied
17
years’ worth of custodial sentences resulting from prosecution
40,000
motor policies worth £65m were refused due to fraud
* All figures are for the year 2023.
How have we won against the fraudsters?
Ghost Broking
We were contacted by someone because they weren't able to access their online account. Unfortunately we found out that the policy was provided by a Ghost Broker who had contacted them via Instagram. They had completed a quote form via WhatsApp, which included details of their driving license, payment card and bank details. We supported them by providing awareness of the right procedures for taking out insurance and although their policy was voided, we reimbursed their premium deposit.
Fronting / Impersonation
We contacted a homeowner whose address was used to incept a policy of concern. They told us that they had no knowledge of an Aviva motor policy in their name. They didn't even know the named driver or the vehicle. We found out that the named driver lived elsewhere and were aiming to get a cheaper premium and their policy was voided. There was no detriment to the homeowner whose identity had been stolen.
Organised Fraud
We saw that an organised crime group (OCG) had taken out around 60 policies and then causing road traffic collisions by a dealer account. Our team worked closely with the broker to close the accounts and harvest all available intelligence. This unearthed several further claims with us and several other insurers. Following the closure of the dealer account, no further policies of concern were incepted.
Advice and support
Can't find what you're looking for?
If you still have questions or are looking for advice and support, find out more below.
