Overview
- The alert highlights a rise in ghost broking scams that leave motorists unknowingly uninsured despite holding convincing documents.
- Victims risk a £300 roadside fine, six licence points, vehicle seizure, and potential court action with unlimited fines or disqualification.
- Fraudsters target younger drivers with offers on platforms such as TikTok, using hijacked insurer branding and counterfeit policy paperwork.
- Many motorists only discover the fraud when stopped by police or when a claim is rejected, and being scammed is not a legal defence.
- Drivers are advised to verify FCA registration, avoid policies sold solely via social platforms, and confirm any brokered policy directly with the insurer; the warning coincides with International Fraud Awareness Week and notes industry fraud costs exceeding £1 billion annually.