One in three young people have seen a suspicious car insurance advert on social media
The Insurance Fraud Burea (IFB) has sent an urgent message out after research found that a third of young people have seen a suspicious car insurance advert on social media.
The IFB and IFED have both stepped up their efforts in fighting the current fraud phenomena which is ‘ghost broking,’ with IFED visiting freshers fairs across the country to give better exposure to the dangers.
Now, in an IFB survey carried out by YouGov found that one in three 18-24 year olds have seen a suspicious looking advert for car insurance on social media, an Insurance Fraud Bureau (IFB) survey conducted by YouGov reveals.
Across all age groups, the number is less, with one in five people having seen a suspicious advert. But it appears the younger drivers are the ones being targeted the most.
The IFB said that people need to be wary as ghost broking scammers use fake adverts to pose as seemingly legitimate sellers on social media, offering cheap car insurance before disappearing without a trace, leaving their victims out of pocket and often uninsured.
It said that young people should be especially cautious as their premiums would usually be higher and with their smaller disposable income, could be a particular target for these fake brokers.
95% of people surveyed claimed to have never heard the term ‘ghost broking’, so the IFB is concerned that a lack awareness about this type of scam could mean that people prioritise saving money without considering the dangers.
Potential consequences of having fake or falsified car insurance could include a £300 fine, six points on your licence, your car being seized and potentially crushed, a possible court appearance, as well as being liable for the associated costs if you were involved in an accident.`
Ben Fletcher, director of the IFB said: “Although legitimate insurers and brokers advertise on social media, it’s essential that people stay savvy to the differences between what’s genuine and what’s fake.
“Enticing offers may seem like an easy way to save money on your car insurance, but the reality is that by cutting corners and not checking if the source is genuine, people are risking their hard earned cash.
“While people have a responsibility to buy from a trusted source, they also have a role to play in the fight against fraud and can help by reporting suspicious adverts to the social media site or reporting ghost broking activity to the IFB’s Cheatline.”
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