Context
The FCA has published a web page warning 17-to 25-year-old drivers about ‘ghost broking’ scams, where “bogus insurance policies” are sold through social media and messaging platforms. The FCA has quoted new research which has revealed that half (49%) of young drivers have bought insurance through social media or messaging apps. With 4 in 10 (39%) not confident in spotting the signs of a fake policy, the FCA states that “…thousands could be paying for cover that doesn’t exist.”
Key points to note and next actions
- Almost half of those polled (45%) said they generally trust products or services bought through social media.
- Young drivers may be at greater risk due to cost of living pressures – with 1 in 7 (15%) saying they find it difficult to fit insurance into their monthly budget.
- To avoid being the victim of a scam or fraud, the FCA is urging young drivers to:
- Be wary of offers that sound too good to be true.
- Avoid deals only available through social media and messaging platforms. Genuine sellers should have a legitimate website, phone number and address.
- Use the FCA Firm Checker to confirm the firm is authorised. Drivers should check the firm’s contact details match those listed on Firm Checker to make sure they are dealing with the genuine firm.