Over the last several years we have had to become wary of sophisticated phishing scams where individuals impersonate or claim to represent a company or organisation.  Phishing is one of the most common methods of cybercrime.  Action Fraud receives over 400,000 reports every year, this figure does not include the ones that go unreported.

Whether you know it or not, at some time you may have or been close to becoming a victim of a ghost broker.

These methods may involve emails, texts, phone calls, WhatsApp messages or even home visits!  In the past, scammers have claimed to impersonate high street banks, delivery companies, tech giants like Amazon or even HMRC.

Unfortunately, the scammers are now turning their attention to SME’s and businesses up and down the country.  The question we are all asking is, how do we protect ourselves, our businesses, and our customers?

Industries that are susceptible to this kind of fraud are those selling a service, such as insurance.  Often, when buying insurance for your vehicle or property it will involve a phone conversation, payment and the sending of documents, but how can you be sure that you are speaking to the company and not a fraudster claiming to represent the company?

This has become prevalent within the insurance sector and has been given the term, ‘ghost broking’.  These so-called ‘ghost brokers’ target drivers and landlords looking to get a good deal on their insurance.  Where in fact, the recipient is receiving an insurance ‘policy’ not worth the paper they are printed on.

So, who will ghost brokers target?  They will claim to act as an intermediatory between the insurer and the driver.  They will further sweeten the deal by claiming to have exclusive offers and the ability to get a ‘good deal’ because of a relationship they have with the insurer.  They particularly focus on those who will have larger premiums, this includes:

• Higher risk drivers
• Delivery Drivers
• Taxi Drivers
• Hire & Reward (food parcel delivery) drivers.

They will often advertise in forums, Facebook groups and even via platforms such a WhatsApp; and use this as the reason they are able to provide cheap premiums, because they spend less on advertising and offices etc.

So, how do you protect yourself against the ghost brokers?

We have created a list of 8 steps we believe will assist anyone who thinks that they may be being targeted by a fraudster who is a ghost broker or a sophisticated phishing scam.

1. Out of the Blue – If a company you have never dealt with is contacting you out of the blue, be wary of this. This might be via email, phone, WhatsApp, message or even in person. Whichever way they contact you, be wary.

What to do:

• Go to the company website and check if the phone number they have given is correct.
• Offer to call them back and take the person’s name.
• You may have heard of the company, but the person contacting you is unfamiliar and not someone you recognise. So, call the company and check they work there.

2. Urgency – Are they trying to pressure you and make you commit to something or make payment urgently?

• Take 5 minutes and offer to call them back. This will give you time to think, maybe speak to a friend, family member or colleague, and gives yourself chance to ’google’ the company and check contact details against the ones they gave.
• If it checks out, you can use the number on the website and request to speak to the person giving you the offer.

3. Spelling, grammar and mistakes – Is the communication you received professional enough and of a high enough standard to represent a company? Most companies will have training and SOP (Standard Operating Procedures) in place, so the chances of receiving a communication from them littered with mistakes is unlikely.

• Double-check the comms they have sent.
• How did they contact you? Check the email address or links they have sent. Does it represent the company they claim to be?

4. Too good to be true? – Maybe you know the company and have heard of them, and you actually are interested in their services. Are they offering a great price that is much less than you would expect or are they contacting you in an unorthodox way?

• A scammer or fraudster claiming to be from the company, may make it difficult for you to turn down and make claims about the offer being a ‘one-off unique offer’ that is only available at that time and with them.
• If this is the case, once again, use and take time out. Maybe even put them on hold for a few minutes while you do research, due diligence or even take advice from someone.

5. Professionalism – Much of the work has been done by the businesses themselves through staff training.

• A reputable and professional company will contact you in a certain way that is professional and befitting of the company.
• They will have the documentation, resources, and merchandise that you would expect from a professional business.

6. Know the product or service – Anyone contacting you from, a company will have a particularly good knowledge of their products, policies and procedures. They will be exact when it comes to use of language, words, terminology and descriptions. They will be able to describe their product well.

• Look out for vague or general comments, as the scammer will often guess and become stuck when it comes to specifics.

7. Report it! – If you find a phisher impersonating your business or trying to sell you something, make sure you report it to the authorities.

• In the UK this would be Action Fraud, it is the national reporting centre for fraud and cybercrime. You can call them on 0300 123 2040.

8. Mandate Fraud – Phishing scams/fraudsters may impersonate a business and target existing customers they already have a relationship. Thus, making contact seem normal.

• They may provide alternative bank details to make payment to.
• Maybe make extra requests for payments or send invoices.
• They may ask you to change your payment structure and make immediate payments to take advantage of an offer or use other false reasons.

All these are red flags that should be noticed and be watchful of.

Hopefully, this has given you an insight into how ghost brokers work and what to look out for.  If you are under any suspicions about the way you were sold your policy, contact the insurer and doublecheck the validity of your policy.

The law is very clear on this, as the onus and responsibility sit with the person taking out the insurance policy, so it is your responsibility as the policy holder to make sure you have the correct policy and documents.

Keep safe and use the points we have made as a guide to help you avoid being ghost brokered.

The best way to avoid being ghosted is to go direct to the broker.

If you have any further questions or need any assistance, you can call any of the Simple Insurance Solutions regional offices, where our team will be ready to help:

• Manchester Head Office:  0161 241 5122 / 0333 358 8666
• Manchester City Centre:  0161 711 0066
• Birmingham:  0121 271 0414
• London:  020 3011 1907
• Glasgow:  0141 442 0255

As a commercial insurance broker, Simple Insurance Solutions work with some of the biggest names in the industry.  We are authorised and regulated by the Financial Services Authority.

We specialise in commercial insurance and provide competitive quotes for:

• Taxi Insurance
• Hire & Reward Policies
• Commercial Property Insurance
• Landlord Insurance
• Delivery Driver Insurance

Furthermore, we can provide tailor made policies for those with special requirements and unique circumstances.