Subscribe
Loading
FREE EBOOK
Valid Email Required to receive free eBookSecurity Tips
Browse by Month
Browse by Category
Browse by Category
0
The insurance industry is thoroughly regulated, with numerous checks and balances. In the United Kingdom, however, scammers are able to pose as insurance brokers—or “Ghost Brokers”—offering significantly cheaper insurance than legitimate insurance firms.
The Telegraph reports, “The multi-million pound scam is operated by fraudsters who target drivers who are economising and looking for cheaper motor insurance deals. These motorists are likely to be vulnerable pensioners, young drivers struggling with soaring premiums and those living within communities where English is a second language.”
The scary part of this scam is that when unsuspecting victims purchase policies, they get certificates of insurance that are essentially worthless. In the event of an accident, they will not be covered.
In some cases, the ghosts will contact legitimate insurance brokers and broker deals for insurance policies that they then pay for using stolen credit cards. The victim gets a real certificate of insurance, but it’s been paid for with stolen money. When the fraud is discovered, the policy is cancelled.
These rogue brokers engage in guerilla marketing campaigns involving windshield flyers, classified ads, and professional-looking websites.
Major insurance companies would fare better if they could identify ghost brokers and stop them in their tracks. One anti-fraud service that’s been garnering attention for delivering fast and effective results is iovation’s ReputationManager 360. This SaaS-based fraud prevention solution incorporates device identification, device reputation, and real-time risk profiling. It is used by hundreds of online businesses to prevent fraud and abuse in real time by analyzing the computers, smartphones, and tablets being used to connect to websites. iovation’s service can recognize devices that have been involved in scams and help insurance companies stop fraudsters upfront.
Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses identity theft in front of the National Speakers Association. (Disclosures)
About the Author
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
Similar Posts
- 5 Insidious Forms of Auto Insurance Fraud
Insurance is intended to have your back in the event that something goes wrong, but some individuals have found loopholes in the system, effectively turning insurance companies into their own personal banks. These scammers have long been known to engage in “slip and falls,” claiming “whiplash,” and engaging in elaborate scams that can take years - How Device Reputation Can Help Prevent Fraud in the Insurance Industry
Insurance companies, like banks and retailers, are forced to deal with a wide spectrum of fraud, which costs the industry and its customers billions of dollars each year. According to the Insurance Fraud Bureau, “Undetected general insurance claims fraud total £1.9billion a year adding on average £44 to the annual costs individual policyholders face, on - Organized Crime Drives Increasing Auto Insurance Costs
All over the world, insurance fraud equates to a multi-billion dollar issue. The Guardian reports that in the United Kingdom, “insurance fraud [has] been on the rise since the recession began. Figures to be published by the Association of British Insurers (ABI) are expected to show that these are still on the rise. As it is, the ABI - Another Way to Investigate Insurance Fraud
Insurance fraud has been around since the dawn of the insurance policy, largely due to its reliance on the honor system. It’s fairly easy to file and process a fabricated claim—just a matter of filling out paperwork online, really. While there are certainly some checks and balances in the claim investigation process, there are often - Scam Artists Sell Over $4 Million in Fake Tickets Every Month
Second-hand ticket retailer viagogo has revealed that scam artists that have been selling fake tickets are collectively reeling in just over $4 million a month, or $49 million a year. Viagogo found that more than 67,000 fake music festival tickets were sold last year. In 2011, that number could reach 100,000. Most of this scamming occurs during the