One in five drivers is at risk of encountering fake car insurance deals that have been circulating on social media, according to a new warning.
The fake deals have left many motorists out of pocket with research now finding a six per cent increase in fraudulent insurance cases since last year.
According to the Insurance Fraud Bureau, one in five people between the ages of 18 and 24 use social media to search for car insurance deals.
However, the Bureau found that using social media is a prime hunting ground for "ghost brokers" who target drivers online.
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TikTok and Snapchat are seen as the most high-risk platforms for fraud cases
PASocial media platforms TikTok and Snapchat are amongst the most popular sites for fraudulent activity to take place.
The General Insurance Fraud Committee detailed how more drivers are tempted by deals that are “too good to be true” due to the high costs of premiums.
Every year, the IFB uncovers roughly 50,000 fraudulent motor insurance policies with thousands being linked to ghost broking activity.
In one case, a student in Birmingham was robbed of £2,000 after falling victim to a ghost broker case.
Ursula Jallow, IFB director said: “More and more young people are turning to social media to find deals and save money.
“These deals are often not what they say they are and leave victims seriously out of pocket and at risk of getting themselves into trouble with the police for driving without insurance.”
She explained that if anyone encounters a fake insurance deal, they can report it anonymously to the confidential CheatLine site.
Meanwhile, Detective Chief Inspector Tom Hill, from the City of London Police’s Insurance Fraud Enforcement Department, added that ghost brokers often use social media to advertise “enticing offers”.
But, these offers, which may seem cheaper than using a registered provider, have links to criminal intent.
He warned: “It truly does pay to make sure you’re getting the real deal when buying an insurance policy.
“A bogus car insurance policy could mean facing a fine, points on your licence, your car being seized and crushed, not to mention covering the cost of a new, valid policy.”
Mark Allen, Head of Fraud and Financial Crime at the Association of British Insurers stated that “no one wants to fall foul to fraudsters”.
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Drivers should report suspected fraud cases to the IFB
GETTYHe said drivers should be aware of offers advertised on social media and contact insurance companies directly or check the Financial Services Register if they think it's fake.
"The golden rule is to never act in haste – if a deal seems too good to be true, then it probably is,” Allen explained.
