Police make arrests and issue cease and desist letters in ghost broking operation

Arrests have been made and cease desist letters were served during a nationwide clamp down on illegal insurance brokers.

According to the Insurance Fraud Bureau (IFB), ghost broking activity increased by 52% from 2022 to 2024.

Following the release of these figures, the City of London Police’s Insurance Fraud Enforcement Department (Ifed) led a nationwide clamp down on illegal insurance brokers.

In a series of targeted operations from the 19 to 30 May, officers arrested a 37-year-old woman in Luton and a 22-year-old man in south London.

The arrested are believed to be key players in an organised networked involved in the sale of fraudulent insurance policies and the laundering of illicit profits, Ifed said.

Meanwhile, seven cease and desist notices were served to offenders who may not realise that their actions are illegal and will be monitored by Ifed to ensure they do not reoffend.

Account Forfeiture Orders worth a total of £48,195 were also granted at Manchester Magistrates Court on 19 May.

The funds were forfeited after they were seized from three bank accounts linked to ghost broking activity. The owner of the accounts was served a cease and desist notice by Ifed officers last year.

Nik Jethwa, detective chief inspector from Ifed, said: “Our collaborative work during this period has enabled us to stop offenders and gather intelligence, which we will now look to develop and act upon.

“The message of these operations is clear. There is nowhere to hide for criminals who sell fake insurance. Ifed will use every tool at its disposal to hold offenders to account, including removing the assets they have obtained through criminal activity.”

ANPR use

Automatic Number Plate Recognition (ANPR) technology was also used during the operation, with Ifed worked in partnership with other police forces to carry out vehicle checks and engage with drivers.

The activity followed intelligence received from the IFB and Motor Insurers’ Bureau concerning vehicles potentially linked to ghost broking.

Ifed arranged for the vehicles to be added to ANPR and instructed Roads Policing Units across the country to share intelligence gathered during traffic stops.

John Davies, intelligence and investigations manager at the IFB, said: “We’re pleased to have collaborated with Ifed in this vital action to combat ghost broking.

“Fraudulent motor insurance sales have devastating consequences. Victims are left out of pocket and emotionally distressed and they’re also driving uninsured, which puts innocent road users at risk.

”Our close collaboration with the police and insurers is crucial in stopping this latest rise in fraudsters who are targeting the public with bogus insurance deals.”