Ghost broking surges 22% in two years; Aviva urges crackdown to protect young drivers

• Aviva is urging tougher enforcement, stronger penalties, and better education to crack down on ghost broking.
• Ghost broking cases detected by Aviva have surged 22% since 2023 with fraudsters often targeting young drivers via social media^[1].
• 84% of young drivers who purchased a fake policy from a ghost broker experienced serious issues – from declined claims to falsified details like age and address^[2].
• Victims lose around £2,000 on average when buying fake insurance, and risk fines, car seizure, and higher premiums for driving uninsured^[3].
• Aviva uncovered one suspected ghost broker who pocketed over £150,000 by selling worthless policies online^[4].
• Young drivers duped by ghost brokers could also have their personal data traded on the dark web.

Ghost broking, where fraudsters pose as legitimate insurance agents illegally selling fake or invalid motor insurance to young drivers, is up more than 4% year on year and by 22% over the last two years, according to new data from Aviva.^[1]

Young drivers aged 17 – 25 are the primary target of ghost brokers. As the fraud continues to grow, figures from Aviva show that, on average, young drivers are losing £2,000 each when they buy fake car insurance policies from ghost brokers. This includes both the average premium paid to a ghost broker (£1,700) and the extra fees (£300) charged by ghost brokers selling these fraudulent policies^[3]. 

Highlighting the scale of the issue, one suspected ghost broker detected by Aviva was found to have made around £150,000 selling fake car insurance to young drivers^[4]. 

Nearly one in three (31%) young drivers have purchased car insurance via social media platforms, putting them at risk of being duped by a ghost broker, according to an Aviva survey of 2,000 drivers aged 17-25^[2]. Buying a fake or invalid policy puts them at risk of having their car seized, facing an unlimited fine and receiving a driving ban. 

Eighty-four per cent of young drivers who bought a fake car insurance policy on social media experienced problems. Among these, 24% discovered their policy had been set up with incorrect details such as age or address; another 24% had a claim declined; 19% reported the seller disappeared; 16% were stopped by police; and 16% became victims of identity theft^[2]. 

These experiences may explain why 68% of young drivers said they would be suspicious of anyone offering access to cheap car insurance on social media.

Aviva has identified a sharp rise in ghost broking scams using fake, professional-looking websites that impersonate legitimate insurers. These portals are designed to appear credible, capturing young drivers’ personal details, accepting payments, and issuing counterfeit insurance documents. This tactic is particularly effective among young and inexperienced drivers searching for affordable cover on social media platforms. Aviva warns that these scams don’t just leave victims uninsured, they also expose them to identity fraud, as criminals frequently sell stolen personal data on the dark web.

Unlike traditional ghost broking, where the ghost broker will alter the policyholder’s details (such as age and address) in order to get what the customer believes to be a cheaper, legitimate policy from an insurer, this new method bypasses legitimate insurers entirely. Ghost brokers are increasingly creating policies that are completely fake, meaning insurers have no record of the transaction. This makes proactive detection difficult – in this situation, insurers typically learn of the fraud only when victims report issues, such as being stopped by police for driving without insurance or after an accident. By then, victims discover their policy never existed, and their personal details may already be circulating on illicit platforms. 

Owen Morris, CEO, UK Personal Lines, Aviva, said, “Ghost broking is a fast-growing criminal enterprise that targets young drivers on social media sites. These fraudsters exploit social media to sell worthless insurance, leaving victims thousands of pounds out of pocket, driving without insurance, and at risk of prosecution. They could also potentially be victims of identity or banking frauds in the future. 

“The scale of the problem is concerning – and it’s getting worse. We’re calling for tougher enforcement, stronger penalties, and greater awareness of ghost broking to protect young drivers. 

“Our message to young drivers is simple: Before buying insurance on social media, always check the seller is genuine before you pay.”

Aviva has set out proposals to end this scam, building on existing regulatory and legislative frameworks, and will work with industry peers, regulators, consumer groups, and victims to help clamp down on this practice.

1. Better enforcement

• Social media platforms should only allow FCA-verified accounts to advertise insurance. This is in line with the Online Safety Act, which sets out a duty on service providers to take measures to prevent users from encountering fraudulent advertisements. Likewise, FCA guidance states that promotions must be fair, clear, and not misleading. Stronger enforcement of these rules would prevent ghost brokers from advertising access to cheap insurance on social media.
• Platforms must share suspicious activity with enforcement agencies such as IFED, Action Fraud, and the IFB. 

2. Tougher penalties

• Work closely with law enforcement to disrupt this harmful practice and ensure that punishments reflect the harm caused to victims, including the use of custodial sentences. 

3. Greater awareness

• Update the driving test to teach young drivers how to buy genuine insurance and avoid scams.
• Ring-fence proceeds of crime to support victims and reimburse losses where possible.

Aviva is also investing in solutions that empower young drivers. One example is QuoteMeHappy Connect, Aviva’s telematics-based insurance. Using a simple app, QuoteMeHappy Connect monitors driving behaviours – including speed, braking, and phone use – and rewards safe habits with lower renewal premiums and e-vouchers. This helps young drivers take control of their costs while promoting safer driving.

Young drivers are very supportive of Aviva’s proposed measures: 

• 66% agree that social media platforms should only use FCA verified accounts for insurance ads^[2].
• 70% say an in-app warning on social media such as “only buy from FCA-verified sellers”, would make them less likely to buy insurance on social media^[2].
• 67% believe there should be stronger criminal penalties for organised ghost broking^[2].
• 61% agree that the driving test should introduce a question on buying insurance safely^[2].

• Beware of anyone selling insurance on social media – they may be a ghost broker. 
• Do your research: contact insurers directly and check the Financial Services Register.
• Verify the broker: check BIBA and FCA registrations. 
• Check the insurer: ensure they’re in the Motor Insurers’ Bureau. 
• Avoid social media deals: legitimate brokers may advertise on social media, but they would always direct you to their legitimate website to purchase a policy 

Anyone suspecting they have been a victim of ghost broking or other fraud can report their concerns to CheatLine or by calling 0800 422 0421.

The British Insurance Brokers Association (BIBA) can help find legitimate insurance for young drivers – Find Insurance Service - BIBA, and the Financial Conduct Authority (FCA) has an online service to check if a firm or broker is authorised to sell insurance: How to check a firm or individual is authorised.

Ends

^1. _{Ghost broking detection data is based on Aviva’s analysis of new and renewing motor insurance customers. [↑]}

^2. _{The research was conducted by Censuswide, among a sample of 2,001 young drivers in the UK (defined as those aged 17-25) who have a full UK driving licence and are insured to drive. The data was collected between 9.10.2025 - 17.10.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council. [↑]}

^3. _{Average ghost broking premium based on the premium paid to Aviva on detected ghost brokered policies divided by the number of detected ghost brokered policies. Fee data based on detected policies where Aviva recorded the fee charged to the customer by the ghost broker. [↑]}

^4. _{Aviva’s policy fraud team linked more than 550 policies to a single suspected ghost broker, who charged between £250 and £300 fee on top of the premium. [↑]}

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