Simple car insurance scam may be targeting NHS staff and key workers to buy false policies

Simple car insurance scam may be targeting NHS staff and key workers to buy false policies

Car insurance fraudsters may be using the lockdown to their advantage by selling false car insurance cover on social media accounts. However, IFB chiefs have warned key workers could be targeted by fraudsters after a man in London was arrested on suspicion of selling the scheme to NHS workers.

The 25 year old man was arrested on suspicion of Fraud by False Representation after suspicions he was taking part in car insurance scams. 

IFB experts believe the suspect has been involved in ghost broking by selling false schemes to unsuspecting motorists. 

They have also been alleged to use the coronavirus lockdown to their advantage by offering discounts to NHS staff. 

Stephen Dalton, JHead of Intelligence and Investigations at the IFB said: “We’re pleased to have made positive progress alongside our enforcement partners at City of London Police’s IFED.

READ MORE: Motorists could lose thousands in car insurance scam

The scam works in one of two ways but both will lead to motorists having no car insurance cover in the event of an accident. 

Policies may be purchased from insurance companies using false information before being sold to customers. 

This will not cover customers as insurance policies are based on a range of factors which determines your overall risk.  

Any false information or discrepancies will see your agreement invalidated and firms refusing to pay out for any vehicle repairs after a claim is made. 

The scheme could also see documents that look like they have been issued by real firms sold to customers. 

Detective Chief Inspector Edellle Michaels, Head of the City of London Police’s Insurance Fraud Enforcement Department (IFED) has warned dovers to be wary of low prices they may see online. 

Ms Michales said buying a ghost broking policy would end up costing motorists in the long run even if the low prices seem tempting.

She said: “Fraudsters have no qualms in using national tragedies, including COVID-19, to try and exploit innocent members of the public and in this targeting even members of our NHS and so it is vital that people remain wary. 

“We are determined to continue operational activity to target suspected insurance criminals and protect the public.

“We would always encourage drivers to be wary of heavily discounted prices they see online, such as social media. 

“Whilst cheap offers may be tempting, purchasing car insurance through a ghost broker will end up costing you far more in the long run – both financially and in points on your licence.”

Motorists who purchase a false policy could be fined up to a £300 fixed penalty notice by police officers. 

Affected road users will also need to purchase a new valid insurance policy and may be charged £150 to remove their car from a pound if it has been seized.

Motorists who may have been a  victim can contact Cheatline online at www.insurancefraudbureau.org or by phone at 0800 422 0421.

Published at Tue, 02 Jun 2020 08:53:00 +0000