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FCA Warns Young Drivers Over 'Ghost Broking' Fake Insurance Scams on Social Media
Date: 20 May 2026 Source: Financial Conduct Authority (FCA)
The Financial Conduct Authority (FCA) has issued a fresh warning to drivers aged 17 to 25 about a surge in "ghost broking" scams, where criminals sell fake or invalid car insurance policies through social media and messaging apps. According to FCA research published on 20 May 2026, around 49% of young UK drivers have bought insurance through social media or messaging platforms, and 39% said they would not feel confident spotting the signs of a fake policy (FCA, 2026).
Ghost brokers pose as legitimate insurance sellers, offering deals that look too good to be true. The policies they sell are either entirely fake, set up with falsified details to lower the price, or cancelled shortly after purchase — leaving the driver unknowingly uninsured and at risk of fines, penalty points or having their vehicle seized. The Insurance Fraud Bureau has reported a 52% rise in ghost broking activity between 2022 and 2024, and Aviva has seen a 22% increase since 2023 (FCA, 2026).
Graeme Reynolds, the FCA's Director of Insurance, urged young drivers to use the FCA Firm Checker tool to confirm any seller is authorised before buying. ICUK Insurance is an independent UK-based price searching service with real human support, and we always encourage customers to verify any broker through the official FCA register before paying for cover.
Reference: Financial Conduct Authority (2026) 'Young drivers warned about fake insurance sold on social media', FCA Press Releases, 20 May. Available at: https://www.fca.org.uk/news/press-releases/young-drivers-warned-about-fake-insurance-sold-social-media (Accessed: 21 May 2026).