A fraudster has been sentenced to two years in prison for setting up fake companies to buy fleet insurance policies for more than 70 vehicles. Police say, some of these vehicles were used by drug dealers and in burglaries.
Suhail Hussain was found guilty of registering seven fake businesses with Companies House and stealing the details of five genuine companies. This enabled Hussain to buy £60,000 worth of false fleet insurance policies, the policies allow businesses to buy insurance cover for all their vehicles under one policy.
Investigators found that Hussain took out 10 fleet policies to cover multiple vehicles at lower prices, this could of made it harder for police to track vehicles involved in criminal activities. The 29 year old, also claimed to be a solicitor when he set up the fake companies and he was not authorised to act as an insurance broker by the Financial conduct Authority.
Andrew Porcher, lead investigator for the fraud department said: “Not only did Hussain act deceitfully to take out false fleet insurance policies, he also helped facilitate wider criminality. This should act as a warning to anyone who is thinking of setting up fake companies or exploiting the details of real ones to commit insurance fraud, you will be caught and you will be punished.”
What is a Ghost Broker?
Ghost broking is the name given to a tactic used by fraudsters who sell fraudulent car insurance by a number of different methods. They typically carry out the fraud by one of three ways: They will either forge insurance documents, falsify your details to bring the price down or take out a genuine policy, before cancelling it soon after to claim the refund plus your money.
It is a legal obligation to have valid car insurance. If you buy from a fraudster you risk: Points on your licence. Having your vehicle seized and possibly destroyed. Being liable for claim costs if involved in an accident.
This is in addition to the money you will have lost buying the invalid car insurance and the money you will have to spend to buy a genuine insurance policy.
Avoid Becoming a victim of ghost broking
1.Trust your instincts, if an offer seems to good to be true, it probably is.
2. Ghost brokers often advertise on student websites. Money-saving forums, university notice boards and marketplace websites.
3. Be wary of anyone contacting you via mobile phone or email. Ghost brokers have been known to use messaging apps, including WhatsApp, Snapchat and Facebook.
4. If you are not sure if a broker is genuine or not, you can check to see if they are authorised to operate on the Financial Conduct Authority’s website. Alternatively, you can check the British Insurance Brokers’ Association website for a full list of authorised insurance brokers.
5. If you are using a broker, always check with the insurance company to see if he or she is authorised with them.
6. You can also check to see if your car is legitimately insured on the Motor Insurance Database website: ownvehicle.askmind.com