Half (49%) of young drivers have bought insurance through social media or messaging apps, new research reveals. With 4 in 10 (39%) unconfident in spotting the signs of a fake policy, thousands could be paying for cover that doesn’t exist.
The FCA is warning 17-to 25-year-old drivers about 'ghost broking' scams where criminals sell bogus insurance policies through social media and messaging platforms.
Ghost brokers pose as legitimate insurance sellers but offer cheap rates. The policies they sell are either entirely fake, are invalid because they falsify details to bring the price down, or are cancelled shortly after purchase. Victims are left unknowingly uninsured and at risk of prosecution, fines and even having their car seized.
Almost half of those polled (45%) said they generally trust products or services bought through social media. Young drivers may also be at greater risk due to cost of living pressures – with 1 in 7 (15%) saying they find it difficult to fit insurance into their monthly budget.
To avoid being taken for a ride, the FCA is urging young drivers to:
- Be wary of offers that sound too good to be true.
- Avoid deals only available through social media and messaging platforms. Genuine sellers should have a legitimate website, phone number and address.
- Use the FCA Firm Checker to confirm the firm is authorised. Drivers should check the firm’s contact details match those listed on Firm Checker to make sure they are dealing with the genuine firm.
Graeme Reynolds, director of insurance at the FCA said:
'Tight budgets make cheap offers tempting – and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy, because driving uninsured could cost you far more than any premium.'
The FCA is working with social media influencers to warn young drivers about the growing threat of ghost broking.
Notes to editors
- Information for consumers on ghost broking.
- Survey conducted by Kantar from 24 April to 1 May 2026 among 1,000 UK drivers aged 17 to 25.
- The Insurance Fraud Bureau and Aviva both report an increase in ghost broking. The Insurance Fraud Bureau found a 52% increase in ghost broking activity from 2022 to 2024 and Aviva saw a 22% surge in cases since 2023.
- Driving without valid insurance is a criminal offence in the UK and can result in a fixed penalty, points on a licence, or disqualification.
- The campaign supports the Government’s Motor Insurance Taskforce goals to tackle uninsured driving, fraud and crime.
- Fighting financial crime is a priority for the FCA, as part of its 5-year strategy.
Facts Only
* Half of young drivers have bought insurance through social media or messaging apps.
* 39% of young drivers are unconfident in spotting fake policy signs.
* The FCA is warning 17-to-25-year-old drivers about 'ghost broking' scams.
* Ghost brokers sell bogus, invalid, or cancelled insurance policies.
* Scammers pose as legitimate sellers to offer cheap rates.
* Driving without valid insurance is a criminal offence in the UK.
* The Insurance Fraud Bureau reported a 52% increase in ghost broking activity from 2022 to 2024.
* Aviva reported a 22% surge in ghost broking cases since 2023.
* 15% of young drivers find it difficult to fit insurance into their monthly budget due to cost of living pressures.
* The FCA urges drivers to check the FCA Firm Checker before purchase.
Executive Summary
Full Take
The narrative of ghost broking leverages a confluence of systemic pressures: financial vulnerability and the ease of digital transaction. The appeal of "cheap offers" directly exploits the pressure of cost of living, turning budgetary constraints into a vulnerability that scammers exploit. This is an example of emotional exploitation, weaponizing fear of financial insecurity to bypass rational decision-making regarding a critical necessity like insurance. The system is layered: financial crime (ghost broking) is facilitated by digital platforms (social media), which are then monitored by a regulator (FCA).
The pattern observed is the exploitation of trust and convenience. Scammers leverage the general trust placed in social media channels and the desire for immediate, low-friction transactions. The lack of confidence among drivers regarding spotting fake policies is an emergent property of this environment, suggesting a knowledge gap that the regulation attempts to close. The focus on the FCA Firm Checker acts as an authority game, attempting to reassert legitimate control over a decentralized, unregulated market.
The implications for human agency are significant: young drivers are positioned as both the victims and the targets in a digital landscape where regulatory oversight lags behind innovation. The cost of this exposure is the potential for severe criminal penalties and loss of property, reinforcing the necessity for vigilance beyond the surface-level warnings.
Sentinel — Human
The text displays the structure, sourcing, and specific statistical detail of human journalism, making synthetic origin highly improbable.