TL;DR: Ghost broking is when a scammer sells fake or invalid insurance policies — usually for cars — at attractively low prices, leaving the buyer uninsured. Buy insurance directly from a known provider or a verified broker, and confirm your policy is valid directly with the insurer, not just through the person who sold it to you.
Ghost broking is when a scammer sells fake or invalid insurance policies — usually for cars — at attractively low prices, leaving the buyer uninsured.
How Ghost Broking Works
A "ghost broker" advertises unusually cheap insurance, often through social media, and provides what looks like a legitimate policy document. In reality, no valid policy exists, or details were falsified to lower the price — leaving the buyer unknowingly uninsured.
Warning Signs to Watch For
A price significantly below market rate, payment requested via bank transfer to a personal account, and a broker who's hard to reach after the sale or has no verifiable business registration.
How to Protect Yourself
Buy insurance directly from a known provider or a verified broker, and confirm your policy is valid directly with the insurer, not just through the person who sold it to you.
If this looks similar to something else you've seen, it's worth reading What Is Grandparent Scams? How It Works and How to Protect Yourself.
This pattern shows up elsewhere too — see What Is Juice Jacking? How It Works and How to Protect Yourself.
Frequently Asked Questions
What is Ghost Broking?
Ghost broking is when a scammer sells fake or invalid insurance policies — usually for cars — at attractively low prices, leaving the buyer uninsured.
How does Ghost Broking typically work?
A "ghost broker" advertises unusually cheap insurance, often through social media, and provides what looks like a legitimate policy document. In reality, no valid policy exists, or details were falsified to lower the price — leaving the buyer unknowingly uninsured.
What are the warning signs of Ghost Broking?
A price significantly below market rate, payment requested via bank transfer to a personal account, and a broker who's hard to reach after the sale or has no verifiable business registration.
How can I protect myself from Ghost Broking?
Buy insurance directly from a known provider or a verified broker, and confirm your policy is valid directly with the insurer, not just through the person who sold it to you.
What should I do if I think I’ve encountered Ghost Broking?
Stop responding immediately, do not click any links or share information, and report it to the appropriate authority. If money or personal information was already shared, act quickly to secure your accounts and report the incident.