Aviva is warning that ghost broking scams are on the rise, urging regulators and social media platforms to tighten enforcement after identifying a 22% increase in detected cases since 2023.
The scams, which often target young and inexperienced motorists, involve criminals posing as legitimate brokers to sell fake or invalid motor policies online.
Young drivers aged 17 to 25 remain the main victims, losing an average of £2,000 each to ghost brokers who advertise cheap insurance through professional-looking websites or social media accounts. Most only discover they have been duped when stopped by police or when trying to file a claim.
While earlier scams involved altering details on genuine policies, Aviva said modern ghost brokers are increasingly creating entirely fake ones, meaning collecting payments and personal data without any real cover in place.
A survey of 2,000 young drivers conducted by Aviva found that nearly one in three had purchased car insurance through social media, where ghost brokers are most active. Among those who were scammed, 84% reported serious issues including rejected claims, falsified personal information, and identity theft.
Owen Morris, CEO of UK personal lines at Aviva, described ghost broking as “a fast-growing criminal enterprise that targets young drivers on social media,” warning that it leaves victims “out of pocket, uninsured, and at risk of prosecution.”
Beyond the impact on victims, Aviva said the rise in ghost broking has wider consequences for the insurance market. Fraudulent activity inflates overall claims costs, increases pressure on legitimate insurers to verify identities and documents, and ultimately pushes up premiums for law-abiding drivers. The scams also erode consumer trust, making it harder for insurers and brokers to engage younger customers online.
To address the issue, Aviva is calling for stronger enforcement of existing regulations, harsher penalties for offenders and better education on how to identify legitimate insurance providers. The company has urged social media platforms to limit insurance advertising to Financial Conduct Authority (FCA)-verified accounts and to share data on suspected scams with the Insurance Fraud Enforcement Department (IFED), Action Fraud, and the Insurance Fraud Bureau (IFB).
Aviva also supports introducing basic insurance literacy into the UK driving test to help new motorists avoid online scams.
Public sentiment appears aligned with these proposals. Nearly two-thirds of young drivers surveyed by Aviva support tighter online advertising controls and stronger criminal penalties for ghost broking.
Aviva's warning comes as insurers continue to grapple with the broader challenge of digital fraud. As the cost-of-living crisis drives more consumers to hunt for cheaper deals online, experts warn that criminals are exploiting affordability pressures and weak online safeguards, a trend that could continue to strain industry resources and regulatory frameworks in the year ahead.
