Driving without legitimate insurance could result in their vehicle possibly being seized by law enforcement. Once the policy is paid for, the ghost broker will sell or cancel the policy, leaving the victims with useless policies, liability, and financial exposure.Ĭonsumers falling for these scams may think they are insured and place themselves in potentially serious legal trouble. Victims often pay for policies via transactions through PayPal, Zelle, and Venmo. They will then either purchase legitimate insurance policies with false details, often resorting to forgery, or create false documents that look like they are from a legitimate insurance carrier. They prey upon consumers short on funds who fail to notice the red flags when something seems too good to be true. Ghost brokers can work alone, or as part of a larger network, and often will develop websites and other social media accounts to advertise cheap insurance. Ghost brokers may falsely claim to be a broker applying for another person’s insurance policy, but they’re really just committing online third-party application fraud.
CLAIMSEARCH NETMAP DRIVERS
Ghost brokers pretend to be a helpful clearing house for consumers looking for a better deal on insurance, such as drivers looking for inexpensive car insurance. The most basic description of a ghost broker is a self-appointed intermediary between insurers and consumers. Ghost brokers are a relatively new type of fraudster who is taking advantage of the increase in virtual interactions between insurers and prospective policyholders.
“Ghost brokers” might sound like a bad Halloween movie, but unfortunately, they are more than just an apparition. Who You Gonna Call? Not the Ghost Brokers! NICB Informer - Spring 2021 VIRTUAL DEALINGS
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