Young drivers in the UK are increasingly falling victim to ‘ghost broking’ scams when searching for car insurance.
New research by Allianz UK has found 12 percent of young drivers aged between 17 and 25 have been affected by insurance fraudsters.
Ghost broking occurs when scammers pose as legitimate car insurance companies, often making use of social media advertisements to target younger drivers.
This typically sees drivers pay for insurance that does not exist, leaving them out of pocket and at risk of breaking the law for driving while uninsured.
Comparing the first quarter of 2025 with the same period in 2026, Allianz has seen a 25 percent increase in young drivers involved in fraud and driving uninsured.
Parents asked to help tackle ghost broking
Allianz is now attempting to raise awareness of ghost broking. It aims to help parents, as almost two thirds (60 percent) worry about their child falling victim to car insurance scams.
However, 84 percent of parents admit they have never heard of ghost broking. And nearly three quarters (72 percent) would welcome more information on how to prevent their child becoming a victim.
Notably, 88 percent of parents surveyed said they wanted social media platforms to tackle scams more effectively.
Nearly one in five young drivers say they know someone, either a friend or family member, who has been a victim of ghost broking. In addition, 63 percent say they have seen adverts for cheap car insurance on social media.
Don’t get scammed by deals too good to be true
As part of its measures to help raise awareness of ghost broking, Allianz has now developed its own online quiz.
Inspired by the DVSA Hazard Perception test, the free five-minute quiz challenges drivers to spot warning signs on social media posts and WhatsApp messages.
Ben Fletcher, director of fraud and financial crime at Allianz UK, said: “Ghost broking is one of the fastest-growing forms of insurance fraud in the UK, and young drivers are being targeted through social media. Our research shows there is still significant confusion around how these scams operate and how to identify them.
“Insurance fraud pushes up the cost of policies for honest customers, so we continue to take action and demonstrate the value of insurers and the work we do to protect our customers.
“We know education is just as important as tackling the problem, so we hope our call to strengthen the driving test with insurance education will help target young drivers before they hit the road. The consequences can be costly, from losing money paid to a ghost broker, having your car seized and left with the cost of a claim, so we want to help consumers understand the risks. As the saying goes – if it’s too good to be true, it probably is.”
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