The UK’s Financial Conduct Authority has warned young drivers over “too good to be true” insurance sold online after research found nearly half of under-25s had bought policies via social media or messaging apps.

The regulator says buying cover this way leaves drivers vulnerable to fraudulent “ghost brokers”, whose policies are often fake, cancelled shortly after purchase, or invalid because they use falsified details to reduce rates.

The UK Insurance Fraud Bureau says there was a 52% increase in ghost broking activity between 2022 and 2024, and insurer Aviva has reported a 22% uptick since 2023.

The FCA says thousands of people could be paying for counterfeit cover.

About 45% of young drivers surveyed by the authority were generally trusting of products and services bought through social media; 15% found it difficult to afford insurance costs.

FCA insurance director Graeme Reynolds said: “Tight budgets make cheap offers tempting – and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist.”

The authority has a Firm Checker tool that helps consumers verify a company’s authenticity.