What is ghost brokering?
It’s estimated that 70% of motor insurance customers in Ireland are unaware of ‘ghost broking’. Ghost broking is where fraudsters are appearing as insurance brokers. According to a recent study published by a leading insurance provider, these ghost-broking fraudsters are selling forged or invalid insurance policies.
To the consumers that were aware of this practice; a whopping 21% are either unsure or unaware that policies purchased via ghost brokers may be invalid. 39% of those surveyed, stated that they were approached by a ghost broker. They were approached either in person or via social media, and a further 3% know someone who has.
The same study showed that these ghost brokers often target minority groups, like immigrants. They knew that these communities wouldn’t be as familiar with the insurance market in Ireland.
How do you identify ghost brokers?
Ghost brokers tend to use social media groups or classified advertisements. They may not have a business email and likely use their own standard Gmail/Hotmail/Yahoo account. Ghost brokers may only use a mobile number, as they have no business landline, or even use WhatsApp.
They will look for a large amount of cash upfront in the form of a ‘deposit’ with no receipt. It is important that you buy your insurance policies from brokers that you can verify. MDRB is a member of Brokers Ireland. Brokers Ireland is the leading representative body for Insurance brokers.
You can also check for a genuine local Insurance Broker on insurancebroker.ie. You can also verify the authenticity of a broker through the Central Bank of Ireland Registry to ensure they are a regulated provider.
At MDRB, we would urge people to think twice before purchasing insurance from non-official sources such as social media. Customers should carefully check any insurance documentation provided for accuracy. If you want an insurance broker you can trust, get in touch with us today.