Data from Aviva shows that ghost broking in the young driver market is up by 4% in the last year and by 22% over the past two years. The insurer said young drivers aged 17 to 25 were losing an average of £2,000 when they bought bogus motor policies from ghost brokers, which includes the average cost of the premium (£1,700) and the associated fees (£300).

Aviva said almost a third (31%) of young drivers had bought a policy from social media platforms. It said this put them at greater risk of falling prey to ghost brokers.

Aviva said it wanted to see social media platforms enact changes that only allowed FCA-verified accounts to advertise insurance. It also called for tougher penalties for ghost brokers as well as better education around the problem, such as introducing information on buying insurance as part of the driving test.

Owen Morris, CEO, UK personal lines at Aviva, said, “Ghost broking is a fast-growing criminal enterprise that targets young drivers on social media sites. These fraudsters exploit social media to sell worthless insurance, leaving victims thousands of pounds out of pocket, driving without insurance, and at risk of prosecution. They could also potentially be victims of identity or banking frauds in the future.

“The scale of the problem is concerning – and it’s getting worse. We’re calling for tougher enforcement, stronger penalties, and greater awareness of ghost broking to protect young drivers.”