Tag: Cheatline

Public warned misleading claims adverts could cost them thousands

  • Survey findings show only one in five people have heard of paid-ad spoofing scams.
  • The Insurance Fraud Bureau (IFB) is currently investigating 140 claims linked to paid-ad spoofing activity collectively worth £1.82 million (£13K per claim).
  • Amy, 25 from Liverpool, shares her experience of being targeted.
  • IFB has launched a national campaign to help people spot the signs of the scam and report it to CheatLine.

The public must be vigilant when searching for their insurer online, warns the Insurance Fraud Bureau (IFB), as it’s revealed that victims of paid-ad spoofing scams could be facing up to £13,000 in unsolicited fees.

Paid-ad spoofing scams involve unscrupulous firms paying for search engine ads that mimic those of genuine insurers. The victim, who needs to contact their insurer to make a claim, can unwittingly contact a third party while believing they’re dealing with their insurer, only to rack up thousands of pounds in fees which otherwise could have been covered by their policy.

Recent YouGov findings show only one in five people (18%) have heard of paid-ad spoofing scams and with millions using insurance services every day, countless consumers are at risk.[1] As a result, the Insurance Fraud Bureau (IFB) has launched a national campaign to highlight the signs of the scam and to encourage people to report it to CheatLine.

Jon Radford, Head of Intelligence, Investigations & Data Services at the IFB, said: “Paid-ad spoofing is a malicious and calculated practice which can have a devastating impact on victims.

“Unscrupulous firms will deliberately pay for search engine ad results that misrepresent genuine insurers. Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything.

“We’re working with insurers and the police to raise awareness and the message is simple – save your insurer’s contact details so you have it to hand if needed and report any signs of paid-ad spoofing scams to our confidential CheatLine.”

It can happen to anyone

Amy, a 25-year-old Camera Assistant from Liverpool, was returning home after visiting friends in early 2024. While driving along a dual carriageway at 50mph, a driver cut in front of her and caused a collision. She knew she had to contact her insurer as soon as she got home. Still shaken, she searched for her insurer on her phone’s browser and called a number on a sponsored ad and provided her details, while being completely unaware it was a third party.

The man on the other end of the phone had been helpful, however Amy thought it was unusual that he hadn’t asked for her policy number. When she told her father, Carl, who is coincidently a counter-fraud Manager at Aviva, he realised she’d been targeted by a paid-ad spoofing scam. Together, they made a series of exhausting phone calls over several hours, to finally withdraw from financial arrangements so Amy wouldn’t face unsolicited charges.

Amy commented on the experience: “I’d never think that I’d be the type of person to be scammed from something like this, but these people are very good at what they do and they’ll get you when you don’t think you’re in a position to be caught, so it’s important to be careful and check everything when searching for your insurer.”

Watch Amy’s story

Pete Ward, Head of Claims Counter Fraud at Aviva, said: “The scourge of misleading online ads is an issue that affects all motorists and insurers. At Aviva, we believe prevention is better than cure, which is why we are working with the IFB to highlight the serious financial implications of paid-ad spoofing. We suggest that drivers save their insurer’s claims number in their phones or keep it handy in their vehicles.   

“When customers mistakenly respond to misleading online ads, we take immediate action to identify and investigate, sharing intelligence with the IFB and relevant regulators. Our proactive monitoring of ads that breach Google’s terms has led to successful takedowns of misleading ads and associated web domains. 

“We’ve seen too many instances where customers contact us about a claim, only to find they never made a claim with Aviva. Imagine the concern when customers realize they don’t know who they are dealing with, what they have agreed to, or the implications of these agreements.

“This confusion puts customers at risk of extreme financial harm: they enter agreements for services like recovery, storage, repair, and hire, believing these costs are covered by their insurance. However, if these costs aren’t recovered from the other party’s insurer, the customer may be liable. 

“There should be no situation where a customer is misled about the identity of the company they are dealing with or the financial implications of the agreements they have signed.” 

How do paid-ad spoofing scams work?

A paid-ad spoofing scam is when a claims firm pays for a search engine ad result which shows up when someone is looking for their insurer. The ads are similar in style to that of a genuine insurer’s and are more likely to appear in mobile phone searches, to encourage people to call through quickly.

Over the phone, the firm may use general terminology to sound like the insurer or to imply that they are affiliated with them. The victim is asked for their personal details to receive ‘support services’ such as a replacement vehicle, and potentially make a claim, which can result in unsolicited third-party agreements.

While any insurance customer can fall victim, those who have been in a road traffic collision are most at risk as they may be shaken after an accident and not thinking as clearly when looking to make a claim. Victims may also believe their fully-comp motor insurance covers everything, but as they don’t know they’re not talking to their insurer, they can sign up to more and more services and it may be weeks until they discover the charges.

Who pays these fees varies. If the other driver is at fault, the firm will claim against their insurer to recover the costs of its unsolicited services. In these cases, the affected individual may not realise they have been linked to a scam. Or, if the other insurer doesn’t believe all the charges as justified, then the victim of the paid-ad spoofing scam may still face some costs.

However, if the other driver is not at fault of the collision, the onus is entirely placed on the person who was mislead into contacting the claims firm for support, to cover all costs that otherwise could have been included with their insurance policy. These fees can run into tens of thousands of pounds and can result in non-stop threatening calls to the victim from third-party firms. In one case, a victim was even pursued to cover over £50,000 in unsolicited fees.

Not only can victims suffer a financial loss, but there is also evidence some firms linked to paid-ad spoofing activity have stolen personal information to use in further fraudulent activity.

The IFB is currently investigating 140 claims linked to paid-ad spoofing worth over £1.8 million in suspected fraud, however it’s believed these figures only scratch the surface as many people are unaware they’ve been targeted.[2]

Top tips to avoid paid-ad spoofing scams

  • Keep your insurer’s contact details written down or saved on your phone.
  • Download your insurer’s app as this usually has customer service support functionality.
  • If searching for your insurer online, go on the insurer’s website to obtain contact details.
  • If viewing a sponsored ad result, check the URL and phone number to ensure it’s legitimate, before sharing any personal information and agreeing to claims services. 

If anyone has concerns relating to paid-ad spoofing scams, they should tell their insurer and contact the IFB’s confidential CheatLine online or via 0800 422 0421.

New drivers urged to avoid car insurance scams on social media

  • The IFB is warning new drivers to watch out for a rising scam known as ‘Ghost Broking’ which involves bogus car insurance deals being sold on social media, as it could cost them their first car. 
  • The warning comes as hundreds of thousands of learners get set to pass their driving tests as they catch up from the disruption caused by Covid-19.
  • The Driver & Vehicle Standards Agency (DVSA) also provides comment.
  • Statistics and campaign content can be found in the notes to newsroom. 

The Insurance Fraud Bureau (IFB) is urging new drivers to watch out for bogus car insurance deals being promoted on social media, as hundreds of thousands of learners* get set to pass their tests following a year of disruption caused by Covid-19.

Fake car insurance sales known as ‘Ghost Broking’ is a growing scam which involves fraudsters pretending to be Insurance Brokers in order to sell unrealistically cheap and completely fake policies, often to younger drivers via Facebook and Instagram.

With a large influx of new drivers on the horizon following confirmation from the Driver & Vehicle Standards Agency (DVSA) that driving test centres face an unprecedented challenge to reduce waiting times left by the pandemic, the IFB is warning new motorists to be vigilant to bogus car insurance deals on social media as it could cost them their first car.

Stephen Dalton, Head of Intelligence and Investigations at the IFB, said: “The last thing new drivers need right now is to risk losing their car for no insurance because they’ve been duped by a scammer on social media.

“Drivers must carry out basic checks to make sure they’re buying car insurance through a trusted provider, or they’ll be making a very expensive mistake.

“I encourage anyone who’s seen evidence of an insurance scam to report it to the IFB’s confidential Cheatline online or on 0800 422 0421.” 

Mark Magee, Head of Driver Policy at the DVSA, said: “DVSA’s priority is to help everyone through a lifetime of safe driving.

“As well as ensuring you have the skills, knowledge and understanding attitude to drive safely, having valid insurance is of the utmost importance when you drive on your own.

“Check to make sure insurance brokers are genuine before parting with your money.”

Learner drivers in a driving school are typically covered by their instructor’s insurance policy, until they pass their test and need to take out motor insurance for their first car. With a rush of new drivers approaching and with so many people facing financial hardship, the IFB is concerned it will provide fertile ground for ‘Ghost Broker’ scammers.

Fraudsters often tempt younger people with their bogus car insurance deals by promoting unrealistically cheap prices up front, despite the fact insurance is meant to be priced based on the risk of the individual. They often then encourage contact with them through popular end-to-end encrypted messaging software such as WhatsApp.

The IFB which is a not-for-profit organisation that works with the police to crackdown on organised insurance scams has seen its investigations into ‘Ghost Broking’ double since 2016, and the scam has remained prevalent throughout the pandemic.

IFB investigations have found cash-strapped young drivers forking out hundreds of pounds for car insurance that in reality is worth no more than a photoshopped piece of paper. In some cases scammers also use stolen personal information to take out policies which are then doctored before being sold on to customers.   

Driving without valid insurance is easily detected by police. Uninsured drivers can have their vehicle instantly seized and are likely to receive six licence points. They can also face court where they might receive an unlimited fine and a driving ban. Furthermore, an uninsured driving conviction will show on records and can affect job prospects.

If a collision is caused by the uninsured driver they may also be liable for covering the costs which can run into the thousands.   

Avoiding fake car insurance deals

New drivers are urged to avoid deals on social media or messaging apps and to only purchase car insurance through reputable sellers.

Anyone with evidence of an insurance scam can contact the IFB’s Cheatline which is quick, easy and confidential to use.

The Cheatline can be contacted online or via phoneline (powered by Crimestoppers) on 0800 422 0421.

Industry calls on public to help ‘stop the scams’

** predicted rise in insurance fraud **

A national campaign, called ‘Stop the Scams’, has been launched by the insurance industry to help the public spot signs of scams and report them to the Insurance Fraud Bureau (IFB) Cheatline following predictions that insurance fraud will rise.

Recent figures show fraudulent insurance claims rose by 5% in 2019 with many being linked to dangerous scams. There are concerns the current economic climate could see this figure rise further, following the 2008 recession where fraudulent insurance claims increased by 17%.

Currently at least one insurance scam takes place every minute in the UK, leaving victims devastated and costing honest consumers more than £3 billion each year. 

To help protect the public and stop insurance scams rising, the IFB along with the Association of British Insurers (ABI) which represents the UK’s 200 insurers, and the City of London Police Insurance Fraud Enforcement Department (IFED), are launching the ‘Stop the Scams’ ad campaign which will see animated scam warnings rolled out across social media.

Common insurance scams highlighted by the campaign:

Compensation scams

This is when a fraudster or unscrupulous firm contacts someone out of the blue to tell them they may be entitled to compensation.

If convinced, victims will hand over their personal details which can be used to steal their identity or bank funds, or they could be encouraged to take out a fraudulent insurance claim.

With record numbers out of work or losing money due to the disruption of Covid-19, these scammers may offer to recover financial losses incurred as a result of the pandemic.

‘Ghost Broker’ scams

A ‘Ghost Broker’ is a fraudster who poses as an insurance provider to target people who struggle financially with unrealistically cheap fraudulent insurance deals on social media.

These fraudsters are known for selling fake car insurance. However, with Covid-19 impacting so many people’s work and travel plans, ‘Ghost Brokers’ could also offer deals that claim to compensate further disruption.

‘Ghost Broker’ scams are rising. The IFB has seen its percentage of investigations into the issue double in recent years. Research also shows one in three 18-24 year-olds has seen a suspicious insurance advert on social media.

‘Crash for Cash’ scams

This involves a fraudster who intentionally drives dangerously (such as slamming on their brakes with a car close behind) to cause an innocent motorist to crash into them so they can claim for compensation.

With many people still getting back into the habit of driving after months of reduced activity, the risk of falling victim to a ‘Crash for Cash’ is higher if driving skills are not up to scratch.

One in every ten injury claims for a motor collision is linked to a suspected ‘Crash for Cash’. The scam often leaves victims injured and facing the loss of their no claims discount. 

Ben Fletcher, Director of the IFB, said: “With Covid-19 causing so many people to lose out financially it sadly means there are more opportunities for insurance scammers to exploit the vulnerable. These fraudsters don’t care who suffer – from the elderly to key workers, we’ve seen them get targeted.

“It’s never been more important to raise public awareness of insurance fraud which is why we’re launching the ‘Stop the Scams’ campaign. If anyone sees something that doesn’t look right, they should report it to the IFB Cheatline.”

Mark Allen, Fraud and Financial Crime Manager at ABI, said: “Insurance fraud is no victimless crime. While the Coronavirus crisis has led to financial hardship for many, no one should think that committing an insurance fraud is a path to easy money.

“From getting a criminal record and possibly a jail sentence, to finding future insurance and other vital financial products like mortgages and loans, much harder to obtain and more expensive, the consequences of committing fraud will be severe and long-lasting.

“The industry makes no apology for its relentless pursuit of insurance cheats to protect genuine customers who end up footing the bill through their insurance premiums.”

Detective Superintendent Peter Ratcliffe, Head of the City of London Police’s Economic Crime Funded Units, said: “Fraudsters will use any opportunity to try and steal money from the public, including the exploitation of tragic events such as the current worldwide COVID-19 pandemic.

“We work effectively with the IFB, ABI and insurers to tackle insurance fraud, and our unit has continued the fight against criminals, despite the challenges posed by coronavirus.

“Our industry partners provide us with valuable intelligence to help us identify suspected fraudsters and carry out this enforcement activity, but we also rely on information from the public. As such, it’s vital people report to IFB’s Cheatline when they have information about a suspected insurance fraud or fraudster.”

Evidence of an insurance scam can be reported to the IFB’s confidential and anonymous Cheatline (powered by Crimestoppers) on 0800 422 0421 or online.

The IFB uses information from Cheatline reports to work with insurers, the police and industry watchdogs to help fight fraud, keep people safe and keep costs down.

Beware Covid insurance scams

Public urged to watch out for insurance claims scams exploiting financial losses caused by Covid-19 disruption

  • The Insurance Fraud Bureau (IFB), the City of London Police’s Insurance Fraud Enforcement Department (IFED) and the Association of British Insurers (ABI) are urging the public to be alert to Covid-19 insurance claims scams.
  • Experts are concerned there may be a rise in insurance claims scams that aim to exploit the financial losses individuals have suffered during the pandemic.
  • Nuisance scammers claiming “you may be entitled to compensation because of      covid-19 financial losses” could become the ‘new PPI’.

The Insurance Fraud Bureau (IFB) in partnership with City of London Police’s Insurance Fraud Enforcement Department (IFED) and the Association of British Insurers (ABI) are warning the public to be alert to a potential rise in insurance claims scams that offer to recover financial losses caused by the pandemic.

With big numbers of people across the UK taking an economic hit because of the disruption caused by Covid-19, there are concerns members of the public will be financially desperate and more susceptible to falling victim to insurance claims scams.

Fraudsters or unscrupulous claims management companies (CMCs) could cold call or message victims with unrealistic offers to help recover financial losses caused by the disruption of Covid-19.

Insurance claims scams could appear in the form of claims phishing, where a victim is told they are entitled to compensation and then asked to provide their personal and financial information in order to process a claim. The scammer can then use these details to steal their identity or attempt to gain access to funds from their bank account.

Another insurance claim scam tactic is claims farming, where a victim is told they are entitled to compensation and encouraged to make an insurance claim. Often there is no ground to claim so the person is manipulated into providing false or misleading information leaving them implicated in a criminal act of insurance fraud.

With several big-name firms now marketing legal services for those who have suffered financial loss due to the pandemic, there is an indication that insurance claims for Covid-19 disruption may become common practice.

Considering the possible audience reach of sophisticated fraud networks and existing unscrupulous CMCs, there is a worrying potential for a nuisance covid-19 insurance claims scam culture to emerge.

“With the pandemic causing so many people to lose out financially, scammers and unscrupulous companies could try to exploit the situation. Nuisance Covid-19 claims scams could become the new PPI. We encourage everyone to be vigilant and to report evidence of insurance fraud to the IFB’s confidential Cheatline”. – Stephen Dalton, Head of Intelligence and Investigations at the Insurance Fraud Bureau (IFB).

The IFB, IFED and the ABI which work in tandem to tackle insurance fraud, are urging the public to be alert to insurance claims scams and to take action to report suspicious activity: 

  • If contacted out of the blue, never provide personal or financial information.
  • Only make a claim directly through the insurance provider and only use the contact details provided at the point the policy was taken out.
  • If support is required to manage a claim, use a reputable FCA-registered (Financial Conduct Authority) company or SRA-regulated (Solicitors Regulation Authority) Solicitors firm.
  • Report any suspicions of insurance fraud to the IFB’s confidential Cheatline service.
  • Take steps to protect personal data from being stolen to help to prevent being targeted. Guidance can be found at the Information Commisioner’s Office.

“Criminals will use whatever means they can to try and exploit innocent members of the public and will have no qualms in using national tragedies, including COVID-19, to commit fraud. It is therefore vital that people remain vigilant to the threat that fraudsters pose and be wary of unsolicited calls, text messages or emails about COVID-19-related insurance claims and offers of compensation. If in doubt – do without! Report any suspicions to the IFB’s Cheatline.” – DCI Edelle Michaels, Head of City of London Police’s Insurance Fraud Enforcement Department (IFED).

“Scammers thrive in times of economic uncertainty and target the vulnerable. The key is to be on your guard – if someone approaches you out of the blue with an offer that seems too good to be true, then it probably is. If in any doubt, then walk away.” – Mark Allen, Manager of Fraud and Financial Crime at the Association of British Insurers (ABI).

Insurance fraud can be reported confidentially and anonymously to the IFB’s Cheatline via its phone service which is powered by CrimeStoppers on 0800 422 0421 or online at insurancefraudbureau.org/cheatline