Ghost scams hit young UK drivers
Key Points
- Half (49%) of UK drivers aged 17 to 25 have bought car insurance through social media or messaging apps, according to FCA research published 20 May 2026
- The FCA is warning of "ghost broking" scams where criminals sell fake, invalid or quickly cancelled insurance policies through social media and messaging platforms
- 39% of young drivers say they are unsure how to spot a fake policy, and 45% generally trust products bought through social media
- Victims of ghost broking risk prosecution, fines, points on a licence, disqualification or car seizure
- The Insurance Fraud Bureau recorded a 52% rise in ghost broking activity between 2022 and 2024, and Aviva reports a 22% surge in cases since 2023
Half of UK drivers aged 17 to 25 have bought car insurance through social media or messaging apps, leaving thousands at risk of paying for cover that does not exist.
The Financial Conduct Authority (FCA) published research on Wednesday (20 May) showing 49% of young drivers have purchased insurance through these channels, with 39% unsure how to spot a fake policy.
The regulator is warning about “ghost broking” scams, where criminals sell bogus insurance policies through social media and messaging platforms.
Ghost brokers pose as legitimate sellers offering cheap rates. The policies they sell are either entirely fake, invalid because the broker falsifies details to lower the price, or cancelled shortly after purchase.
Victims are left unknowingly uninsured and can face prosecution, fines, points on a licence, disqualification, or having their car seized.
The Kantar survey of 1,000 UK drivers aged 17 to 25, conducted between 24 April and 1 May 2026, found 45% generally trust products and services bought through social media.
One in seven (15%) said they find it difficult to fit insurance into their monthly budget, suggesting cost pressures push young drivers toward cheaper deals.
Industry figures point to a growing problem. The Insurance Fraud Bureau recorded a 52% increase in ghost broking activity between 2022 and 2024, and Aviva reported a 22% rise in cases since 2023.
The FCA campaign supports the Government’s Motor Insurance Taskforce, which targets uninsured driving and motor insurance fraud.
The FCA advised young drivers to be wary of offers that sound too good to be true and avoid deals only available through social media or messaging platforms. Genuine sellers should have a legitimate website, phone number and address, and buyers can verify firms using the FCA Firm Checker.
The FCA said it is also partnering with social media influencers to warn young drivers about the scam.
“Tight budgets make cheap offers tempting, and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy, because driving uninsured could cost you far more than any premium,” said Graeme Reynolds, Director of Insurance at the FCA.
