The Financial Conduct Authority has warned drivers aged 17 to 25 about fake motor insurance sold through social media and messaging platforms, highlighting the risk of “ghost broking” scams that leave buyers without valid cover. New research cited by the FCA found that 49% of young drivers had bought insurance through social media or messaging apps, while 39% were not confident they could spot the signs of a fake policy. The FCA said ghost brokers pose as legitimate sellers and offer cheap insurance, but the policies may be entirely fake, made invalid by false details, or cancelled soon after purchase. Victims can be left unknowingly uninsured and exposed to prosecution, fines and vehicle seizure. The research also found that 45% of those polled generally trust products or services bought through social media and that 15% struggle to fit insurance into their monthly budget. The FCA is urging young drivers to treat unusually cheap offers with caution, avoid deals available only through social media or messaging apps, and use the FCA Firm Checker to verify that a firm is authorised and that its contact details match the official listing. It is also working with social media influencers to raise awareness of the threat.
Financial Conduct Authority2026-05-20
Financial Conduct Authority warns young drivers about ghost broking scams on social media
The Financial Conduct Authority has warned drivers aged 17 to 25 about “ghost broking” scams selling fake or invalid motor insurance via social media and messaging platforms, which can leave buyers uninsured and exposed to prosecution, fines and vehicle seizure. Citing research that nearly half of young drivers have bought insurance through these channels and many struggle to spot fake policies, the FCA urges caution over unusually cheap offers, advises use of its Firm Checker to verify firms, and is working with influencers to raise awareness.