FCA warns young drivers on social media 'ghost broking' insurance scams
FCA research shows 49% of young drivers bought insurance via social media or messaging apps, with 39% unable to spot fakes, prompting a ghost broking scam warning.
The FCA is highlighting widespread exposure of young drivers to ghost broking scams via social media. Insurers and brokers face reputational and conduct risk from impersonation and from genuine customers unknowingly holding invalid cover.
Increases focus on digital distribution integrity, brand impersonation, and consumer harm in motor insurance.
Action Required
Enhance fraud detection, customer education and digital channel surveillance for motor insurance distribution.
Indicates supervisory attention on scam ecosystems affecting insurance customers and distribution channels.
Implement enhanced monitoring of social media impersonation, strengthen customer verification messaging, and coordinate with platforms on takedown of ghost broker content.
“Half (49%) of young drivers have bought insurance through social media or messaging apps. The FCA is warning 17-to 25-year-old drivers about 'ghost broking' scams where criminals sell bogus insurance policies through social media and messaging platforms.”