Context
FOS has published a consumer-facing article highlighting a rise in ghost broking, urging consumers “to be vigilant as online fraudsters prey on victims, offering fake insurance deals”. The article speaks about FOS’ view that typical ghost brokers operate on social media and trick thousands of consumers a year into thinking they are signing up to legitimate insurance deals.
Key points to note and next actions
- Ghost brokers may use fake policies, altered policies, or might cancel policies without the policyholder’s knowledge and keep the refunds.
- In relation to motor insurance in particular, FOS warns of ‘red flags’ such as unusually low prices, unprofessional contact methods, a lack of accreditation, requests for cash or untraceable payments, and vague or suspicious policy documents.