'Ghost' brokers selling bogus policies in car insurance scam

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'Ghost' brokers selling bogus policies in car insurance scam

Police are issuing warnings over a recent car insurance scam, which involves 'ghost' insurance brokers selling bogus policies, the Telegraph reports.

Ghost brokers work in numerous ways, with some approaching motorists in person at shopping centres, while other use the internet.

One case saw a fake call centre being set up, with the culprits using an iPod to create office noise as they operated from a flat in London.

The culprits, Danyal Buckharee, 42, and Giovanni Recchia, 47, were jailed after motorists were drawn to the scam by online adverts offering policies that were around 15% cheaper than those offered by legitimate insurance companies.

In a separate case, Azeem Mahmood Hussain, 19, from Walsall, was sentenced to 12 months imprisonment in June after selling fake car insurance deals on Gumtree.

Detective Sergeant Matt Hussey from the Insurance Fraud Enforcement Department, which is part of the City of London Police, noted: "Hussain is one of the youngest we've dealt with for insurance fraud."

However, it has been revealed that there is a twist on the scam which involves the ghost broker taking out a policy at a false address.

By doing so, drivers living in high premium areas, such as London, are offered cheaper insurance policies as, unbeknownst to them, they are registered to a sparsely populated area of the country, such as northern Scotland.

But it is not only the address which is altered, as 'ghost' brokers also doctor the driver's age and previous claims history. As a result, many victims are unaware that their policy is actually invalid.

As part of their ongoing investigation into 'ghost' brokers, City of London detectives have sent officers to Aberdeen, Inverness and the Isles of Skye and Harris.

Have you been affected by a 'ghost' broker?

#Motorists hit by car #insurance scam

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