Drivers have been warned of a rise in ghost broking scams ensnaring young motorists across the UK, after research found a 25 per cent surge in 18-to-24-year-olds caught up in fraud.
The research also found ghost broking left young drivers at risk of travelling without valid insurance, based on a comparison of the first quarters of 2025 and 2026.
Fresh research published by the insurer yesterday shows that 12 per cent of 17- to 25-year-olds have already been duped by insurance fraudsters, meaning roughly one in ten young drivers has fallen victim.
The problem has been spreading through social media, where almost two-thirds of young drivers revealed they have encountered adverts for suspiciously cheap cover. Nearly half report that such adverts are becoming more frequent.
Close to one in five young motorists warned someone in their circle, whether a friend or relative, has been personally affected by the scam.
The scam works by criminals posing as genuine insurance providers, typically via platforms such as Instagram and WhatsApp, where they peddle policies that are either entirely fabricated, invalid, or obtained using falsified details.
Allianz UK revealed it deals with approximately 13,000 falsified or deliberately manipulated policies each year, and the trend shows no sign of abating.
Between 2022 and 2025, the number of fraudulent, misrepresented or identity-theft-linked policies detected by the insurer climbed by 33 per cent.
Only 39 per cent of young drivers realise their vehicle could be impounded, while just over half understand they might be left personally responsible for costs arising from an accident or injury.
A third of young motorists did not know that being caught with invalid insurance within two years of passing their test could result in a ban, forcing them to reapply and resit both examinations.
The parental knowledge gap is also worrying, with 84 per cent of parents admitting they had never even heard of ghost broking before being surveyed.
Nearly three-quarters of parents said they would appreciate more guidance on discussing the issue with their children, with 22 per cent feeling ill-equipped to explain the risks at all.
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A large majority, 82 per cent, said they believe there are insufficient resources available to help young drivers navigate these dangers safely.
Allianz UK has responded by launching a campaign specifically aimed at helping parents keep their children financially protected as they prepare to get behind the wheel.
To tackle the growing threat, the insurer has created an online quiz in collaboration with Francis Noakes, a driving instructor and influencer behind Driving School TV.
Modelled on the DVSA’s hazard perception test, the tool challenges users to identify red flags in social media adverts, emails and WhatsApp messages.
Allianz UK is also pushing for the DVSA to incorporate insurance education into the theory test, and is encouraging parents to share the quiz with teenagers who are learning to drive.
Ben Fletcher, Director of Fraud and Financial Crime at Allianz UK, said: “Ghost broking is one of the fastest-growing forms of insurance fraud in the UK, and young drivers are being targeted through social media.”
Mr Noakes added: “Learner drivers are tested on everything from stopping distances to road signs before getting behind the wheel.
“But nowhere are they taught how to spot a fake insurance policy or avoid ghost brokers, which have affected some of my students.”
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