One of Britain's biggest car insurers has warned it has detected a huge rise in the number of fraudulent cases targeting young motorists - and said it is costing the average victim around £2,000.

Aviva said young drivers aged 17 to 25 are the primary target of 'ghost brokers' selling fake motor insurance policies, typically via social media.

These online scam artists pose as legitimate insurance intermediaries and often target those that struggle to find affordable cover, particularly new drivers who incur the highest costs.

And while what they sell might look like a legitimate insurance policy, it is typically worthless, forged or the insurance is cancelled without the drivers' knowledge.

Those who fall for the scam often pay in the region of £1,700 to the ghost broker for the fake policy plus an additional finder's fees of around £300.

Despite the obvious risks of using brokers sourced on platforms including TikTok, Instagram and Facebook, Aviva says ghost broking detections are running higher this year than in 2024.

It said the problem is not only 'concerning' but appears to be 'getting worse'.

Ghost brokers often produce insurance documents that are entirely fake and bypass legitimate insurers completely, or falsify someone's details to artificially bring down the cost, or take out a genuine policy but then cancel it.

Often those who purchase cover via one of the fake brokers do not realise their insurance is invalid until they are stopped by police or involved in an accident.

If caught without cover, motorists face a minimum fixed penalty of £300 and six points. In more serious cases, they can even trigger court proceedings where unlimited fines and a driving ban can be issued, putting a criminal conviction on a driver's record.

It can also result in the uninsured vehicle being seized and crushed by the police. To get the vehicle back you will need to pay a fee of at least £150 to have it released - and then have to fork out for valid insurance.

As well as the average £2,000 loss to the fraudsters, people with a fake policy could face being liable for costs for any injuries or damage caused while driving without cover, having their car seized by the police, and court action.

Ghost brokers also pose a serious cyber threat as they steal personal information in order to take out policies under the names of individuals – such as experienced older drivers who usually have cheaper insurance – in order to forge and sell on policies in other people’s names. 

Many scams start on social media and Aviva said it has identified a sharp rise in ghost broking scams using fake, professional-looking websites that impersonate legitimate insurers.

Owen Morris, UK personal lines chief executive at Aviva, said: 'Ghost broking is a fast-growing criminal enterprise that targets young drivers on social media sites.

'These fraudsters exploit social media to sell worthless insurance, leaving victims thousands of pounds out of pocket, driving without insurance, and at risk of prosecution. They could also potentially be victims of identity or banking frauds in the future.

'The scale of the problem is concerning – and it's getting worse.'

He added: 'Our message to young drivers is simple: Before buying insurance on social media, always check the seller is genuine before you pay.'

Ghost broker red flags

The Insurance Fraud Bureau (IFB) says there are four key red flags that typically giveaway a ghost broker. These are:

1. The policy may be unrealistically cheap, with an upfront quote.

2. The seller only wants to communicate in private direct messages on social media or WhatsApp. Messages can often include bad spelling and typically provide vague details.

3. The advert may look unprofessional.

4. The seller may not have a legitimate website, UK landline number or address.

If drivers experience any of these, there are ways to check the legitimacy of those offering cheap cover. You can then: 

1. Check the insurance broker is registered with the British Insurance Brokers' Association.

2. If dealing with an insurer, check they are a member of the Motor Insurers' Bureau.

3. Whether broker or insurer, check they are registered with the Financial Conduct Authority. 

Anyone who thinks they have been a victim of ghost broking or other fraud can report their concerns to CheatLine or by calling 0800 422 0421.