Research from the Insurance Fraud Bureau shows that the industry is discovering at least one new ghost broking operation every day. The IFB has launched an awareness campaign to alert consumers about the issue and make it easier for them to spot fake car insurance deals.

In the past 12 months, the IFB has received reports of 596 suspected ghost broking networks, which can each reach thousands of people through social media and community groups. The campaign, Ghost Broking: See Through the Scam, is a joint initiative with the Association of British Insurers, the Chartered Insurance Institute, the City of London Police's Insurance Fraud Enforcement Department, the Financial Conduct Authority and several insurers.

Ursula Jallow, director at the IFB, said: “Ghost brokers deceive people with less experience of buying insurance, which includes young and first-time drivers and people who have recently moved to the UK. Victims are left out of pocket and risk their vehicle being seized for being uninsured.

“With new ghost broking scams emerging daily, awareness has never been more important. The industry has come together to stand against fraud with a national campaign to tackle the issue. For the first time, multilingual information is also being provided to help raise awareness with people who speak English as a second language.”

Figures from IFED show that Greater London accounts for 39% of ghost broking cases. The next most prevalent areas are Greater Manchester (13%), West Yorkshire (11%), West Midlands (10%) and Thames Valley (5%).