Thousands of motorists could be driving WITHOUT valid insurance after being tricked by new scam
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Thousands of drivers are being left without insurance by fraudsters flogging fake policies, cops believe.
Detectives are investigating a growing number of cases where motorists have been tricked into parting with cash by so-called “ghost brokers”.
Nearly 900 reports of such scams have been made, costing victims and insurers an estimated £631,000.
But it is thought the true scale is far worse, with many drivers having no idea their policies are phoney until they make claims or get stopped by police.
The alert comes as the City of London Police insurance fraud squad launches a national campaign tomorrow warning of the dangers.
(Image: Getty)
Analysis of the crime figures shows men in their twenties are most likely to get targeted, often through social media such as Facebook and Instagram or messaging apps like Snapchat.
The crooks often put messages on student websites or money-saving forums and advertise in pubs, clubs, newsagents and car repair shops. They offer cover at tempting-looking rates, sometimes as little as £100.
Most fraudsters forge documents but others take out genuine policies, then cancel them and claim refunds as well as pocketing their victims’ money.
(Image: Getty)
One of the worst cases involved a crook who set up 133 fake policies worth £90,0000. Another scammed nearly £60,000 before he was caught.
Police spokesman Det Chief Insp Andy Fyfe said: “Ghost brokers leave victims with policies that are worthless and open to the severe harm that comes with driving without valid insurance.
“They also cause financial harm to the insurance industry by pushing up the cost of premiums.”
The Insurance Fraud Bureau said it was vital to raise awareness of the issue.