Young drivers targeted by 'ghost brokers' selling fake car insurance online

Young drivers are being targeted by 'ghost brokers' selling fake car insurance online, the Financial Conduct Authority has warned ^[1][2]. Half of drivers aged 16-25 have bought policies through social media or messaging apps, many of which are fake, according to an FCA survey ^[1][2].

The FCA surveyed 1,000 drivers regarding insurance purchasing habits ^[1][2]. Victims of the scam are unknowingly driving without insurance, which could lead to prosecution, fines, or having their car seized ^[1][2]. The watchdog noted that legitimate insurance brokers should have a website, phone number, and address ^[1][2]. It advises using the FCA Firm Checker to confirm a broker is authorized ^[1]. Amie Donaghey, 21, told BBC News NI she was blocked on all platforms after reporting fake insurance ^[1]. She had been quoted a price far below the rates around £4,500 charged by high-street insurance companies ^[2]. The FCA is working with social media influencers to warn young drivers about ghost broking ^[2].