BUSINESS SUPPORT XXXXXXX YOUR FMB PROTECT YOURSELF AGAINST FRAUDSTERS
Fraudsters are now meddling with hardworking tradespeople’s insurance policies, says Jade Alger of FMB Insurance GHOST BROKING
I f you rely on vehicles, tools, or public liability cover to run your business then you need to understand what ghost broking is and how to stay protected. Ghost broking is when scammers pose as authorised brokers and sell fake or invalid insurance policies. These criminals often use social media platforms to target victims, advertising ‘too good to be true’ deals on car, van or business insurance. These fraudsters offer apparently legitimate policies – until you try to make a claim or get stopped by the police. Ghost brokers target small business owners, tradespeople, and those trying to secure affordable cover. How does ghost broking work? Ghost brokers often deceive victims by: ● forging documents so you think your insurance certificates are official but they’re actually fake; ● providing false details to insurers to artificially reduce the premium,
● avoid deals that come through social media messaging apps or from unverified contacts; ● contact the insurer directly to confirm your policy is valid; and ● trust your instincts – if a deal seems too good to be true, it probably is. FMB Insurance is here to support members with insurance solutions tailored to the needs of the construction and building industry. By understanding the challenges faced by tradespeople and small businesses, FMB Insurance provides reliable cover and straightforward advice when you need it most. Need help or suspect a scam? If you suspect you’ve been targeted by a ghost broker or need help verifying a policy: ● contact the FMB Insurance team using the details below; and ● report it to the Insurance
leaving you with a policy based on inaccurate information that could later be voided; and ● claiming they’re working on your behalf to secure policies but don’t actually arrange cover. If you or your team relies on vehicles or tools every day, unknowingly driving uninsured could lead to fines, prosecution or loss of your vehicle – bringing work to a standstill. Despite the threat of ghost broking, awareness remains low. An Insurance Fraud Bureau study found that just one in 10 people are familiar with the term so scammers often operate undetected. The consequences for individuals who fall victim include: ● financial loss as money paid for fake policies is rarely recovered; and ● emotional stress as being scammed
can cause anxiety and lead to mistrust in any future dealings with insurers.
Fraud Bureau via their CheatLine by scanning the QR code.
For the industry, consequences include: ● loss of public confidence as scams damage the reputation of legitimate
insurance providers; ● higher premiums
as ghost broking contributes to the £1.1 billion annual insurance fraud in the UK; and ● wasted resources as investigating fraud diverts time and money away from genuine policyholders.
How do I find out more?
FMB Insurance can manage all of your business protection needs, delivering the right policies for the right situations. Insurance and warranty products include contract works insurance, public and employers’ liability insurance, building work guarantees, unoccupied property
How do I stay safe? If arranging business or vehicle insurance, be sure to: ● verify brokers on the Financial Conduct Authority register;
insurance, and more. Call 01353 652 760 or email insurance@fmb.org.uk for more information on how to protect your business.
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www.fmb.org.uk
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