Protecting Yourself from Insurance Scams and Ghost Brokers
At City Insurance Group, we take pride in providing our customers with genuine and reliable insurance products. Unfortunately, the insurance industry is not immune to scams, and ghost brokers are a growing threat. These fraudsters pose as legitimate insurance companies or brokers to steal money from unsuspecting individuals.
With the information below, we aim to equip you with the knowledge to identify and avoid insurance scams, particularly those perpetrated by ghost brokers on social media platforms like WhatsApp.
When unsuspecting people buy insurance policies, only to find out that the seller is not genuine the realisation they have been scammed can come as a big shock. These insurance sellers typically use names, images and logos from well-known Insurers to extort you out of your hard earned cash!
To find out you have fallen victim to an insurance scam, and lost your money, is bad enough. However, this also means that you have been driving without valid insurance, which can lead to your car being seized, points on your licence and more serious circumstances if you are invloved in a road traffic collision.
Frustration can set in, the thought of, how could his happen. Please know that you are not alone, these fraudsters are rife on Social Media. You may see an advert offering cheap insurance, quite often a glossy looking ad that appears genuine; but may not be! Lots of Insurance providers have had their branding used as a front to these fraud rings. We ourselves have had people getting in touch, thinking they have bought a policy from us. Once we have checked what they have had sent through, it is clear that they did not buy a legitimate policy through us, but have indeed been scammed online.
- Unrealistic Premiums: If a quote seems too good to be true, it probably is. Ghost brokers often lure victims with incredibly cheap policies that are far below the market average.
- Pressure to Pay Immediately: Legitimate insurance companies will not pressure you into making an immediate payment, especially via bank transfer to a personal account.
- Unfamiliar Payment Methods: Reputable brokers and insurers will have secure online payment options or accept payments over the phone using a business account. Never pay by cash, money transfer, or gift cards.
- Lack of Documentation: A genuine insurance policy will come with detailed documentation outlining the coverage, terms, and conditions. Be wary if the broker is hesitant to provide this information.
- Unregistered Broker: Ghost brokers are not registered with the Financial Conduct Authority (FCA). You can verify a broker's legitimacy by checking the FCA register.
- Deal with Reputable Companies: Conduct your research and choose a well-established insurance company or broker with a positive reputation.
- Get Quotes from Multiple Sources: Don't settle for the first quote you receive. Obtain quotes from several reputable insurers or brokers to compare prices and coverage options.
- Be Wary of Social Media Solicitations: Be cautious of unsolicited insurance quotes received on social media platforms like WhatsApp. Legitimate brokers typically won't solicit business through these channels.
- Verify Broker Registration: Before proceeding with any broker, confirm their FCA registration to ensure they are authorized to sell insurance products.
- Read the Fine Print: Take your time to read and understand the policy details before you buy. Don't hesitate to ask questions if anything is unclear.
These Scammers, quite often look to target vulnerable individuals, these may range from young drivers looking for cheap insurance to people who may not have spoken English as their first language. Prevention is better than cure! Be careful when looking for insurance, check that providers are genuine. Be wary of the validity of adverts on Social Media, Facebook, Instagram and What’s App etc. Check that any offer takes you to a genuine website. Go to the genuine website and call the company from a different number on that site. Satisfy yourself all is well….Our advice is not to pay any money over Social Media.
Check any phone number you have been given matches the correct phone numbers on genuine sites. It is unlikely and genuine Insurance firm would use a mobile number on an advert or their website. At City Insurance, we only sell insurance products over the phone and our website. We are regulated by the FCA – Finally, be wary, Scammers may send you emails or links to genuine providers. This is just a Ruse, to help you think all is well before you hand over any money.
Final Summary: Do Not buy a policy via Social Media!
What to Do if You've Been Scammed?
If you suspect you've been the victim of an insurance scam, here are the steps you should take:
City Insurance Group is Committed to Customer Protection.
At City Insurance Group, we are committed to providing our customers with a safe and secure insurance experience. We offer a variety of insurance products to meet your needs, and our team of qualified brokers is always available to answer your questions and guide you through the process.
If you are ever unsure about the legitimacy of an insurance quote or broker, please do not hesitate to contact City Insurance Group directly. We'll be happy to help you.
To get a genuine insurance quote, you can contact us by phone or quote online now
Car - 0345 017 9795 
Van - 0345 017 9792
Motorbike - 0345 017 9795
Home - 0333 0151509
Let Property - 0333 0151508
Business - 0333 0151507
Travel - 0333 0151516City Insurance Group
88-89 High St
Winchester
Hampshire
SO23 9AP
Tel: 01962 844848
E-Mail: info@cityinsurance.co.uk
