70% of motor insurance customers in Ireland are unaware of 'ghost broking', the practice of fraudsters appearing as insurance brokers and selling forged or invalid insurance policies, according to new research by Liberty Insurance.
1,000 consumers were surveyed by Core Research, as Liberty launches a new campaign with Brokers Ireland to raise awareness of the practice, which places Irish motorists at risk of insurance fraud and invalid insurance cover.
Among motorists who are aware of the practice, 21% are either unsure or unaware that policies purchased via ghost brokers may be invalid.
39% of respondents said they have been directly approached by a ghost broker, either in person or via social media, and a further 3% know someone who has.
The research also shows that ghost brokers often target immigrant communities, who may be less aware of the operation of the insurance market in Ireland.
María Eugenia Mugueza, Claims and Operations Leader for Liberty Insurance in Europe said she would urge customers to only purchase insurance policies from brokers they can verify.
"At all times, customers can search for a genuine local Insurance Broker on insurancebroker.ie or verify the authenticity of anyone selling insurance policies on the Central Bank of Ireland Registry to ensure they are a regulated provider," she said.
Cathie Shannon, Director of General Insurance at Brokers Ireland welcomed this consumer awareness initiative by Liberty Insurance.
"While conducting business over the web is now the norm, the web is also an easy marketplace for fraudsters.
"Consumers always need to be alert and this research shows that a large proportion of consumers don't even know they need to have their guard up.
"We urge consumers to think twice before purchasing insurance from sources such as social media sites and carefully check any insurance documentation for accuracy," she said.
Advice from Liberty Insurance on how to identify a ghost broker:
They may use social media groups or classified advertisements on sites used for individuals selling items.
They may not have a business email and use their own e.g. Gmail/Hotmail account.
They may only use a mobile number, as they have no business landline, or even use WhatsApp.
They look for a large amount of cash up front as a 'deposit' without giving a receipt.
They sometimes target consumers who may be vulnerable and unaware of how the insurance market works in Ireland, such as consumers for whom English is not their native language.
