'Ghost brokers' scam: Warning over fake car insurance ads on social media

Authorities in Ireland and Northern Ireland are issuing stern warnings about "ghost brokers" who exploit social media platforms like Instagram, Facebook, and TikTok to sell fraudulent car insurance. These scammers advertise cheaper policies, often quoting prices significantly lower than traditional insurers, tricking unsuspecting individuals into purchasing fake or forged documents.

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I knew it was a real person, so I just believed him.

One victim, 21-year-old Amie Donaghey, was conned out of £700 for a policy she believed was legitimate. She transferred the money after seeing an advertisement on social media, communicating with the "broker" via messages and phone calls. Believing the transaction was "legit," she received emailed documentation that appeared to be from a genuine English insurance company. However, her situation unraveled when she was stopped by police and informed she was uninsured.

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It was dear enough for me to believe it, so I was like – this is grand, this is legit.

The legitimate company had no record of her, and the "broker" subsequently "ghosted" her. Ms. Donaghey now carries a criminal conviction for driving without insurance, despite the court imposing no penalty due to the circumstances. She urges others to be cautious, stating, "If it looks too good to be true, then it’s definitely too good to be true."

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Authorities advise the public to be wary of anyone communicating solely through messaging apps like WhatsApp, Telegram, TikTok, Snapchat, or Instagram for insurance sales. They also caution against electronic transfers to personal accounts for policy payments. The consequences of falling victim to these scams can be severe, including prosecution under the Road Traffic Act, which can lead to difficulties and increased costs in obtaining future insurance.

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If it looks too good to be true, then it’s definitely too good to be true. Just be careful and do your research.