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[3] 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[4].
- Survey conducted by Kantar from 24 April to 1 May 2026 among 1,000 UK drivers aged 17 to 25.
- The Insurance Fraud Bureau[5] and Aviva[6] 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[7].