Social media has a role to play in combatting ghost broking

This article originally appeared in Insurance Day, May 2025.

Social media platforms have played a pivotal role in the rise of “ghost broking” – the term referring to those who pose as legitimate insurance providers, often offering suspiciously low rates to unsuspecting customers.

However, social media offers unique capabilities for insurers and other stakeholders to educate and protect users – and to demonstrate leadership in safeguarding the integrity of the market.

On the one hand, social media serves as an inexpensive and far-reaching medium fraudsters exploit to access a wide range of potential victims. Platforms are increasingly targeted by individuals engaged in fraudulent activities, such as ghost broking.

These fraudsters create polished, professional-looking content and leverage the credibility of influencers to lend legitimacy to their offers. Without adequate due diligence, influencers may unknowingly promote fraudulent products to their audiences, believing them to be legitimate while they too are being exploited by ghost brokers. New or younger drivers, who may be more susceptible to these schemes, often turn to social media to follow influencers and make purchasing decisions based on their recommendations.

The evolving nature of platform oversight may leave certain gaps that can be exploited for fraudulent purposes.

On the other hand, social media offers significant potential for education and user protection. Insurers can use these platforms to actively engage with users, promote awareness about the risks of fraud and provide educational content to help users make informed decisions.

Additionally, partnerships with influencers who are trusted by these groups could further amplify the message of consumer protection, creating an avenue for building trust within these platforms. The opportunity to educate users and build a sense of security within social media spaces is immense.

The combination of high insurance costs for new drivers, the vulnerability of young consumers who may be more price-sensitive and trust afforded to influencers creates an ideal environment for fraudulent schemes to thrive.

Since many young people may not have enough experience or knowledge to recognise the warning signs of a scam, they are more likely to fall victim to fraud when it is promoted by someone they perceive to be trustworthy.

Influencers

For younger generations, influencers are often seen as relatable figures who provide personal recommendations on products and services. This creates a strong sense of trust between influencers and their audience, where followers are likely to take their endorsements at face value. Ghost brokers can use this trust to present themselves as credible sources of information, making it difficult for users to distinguish between legitimate offers and fraudulent ones.

When influencers promote products or services, their endorsement can lend credibility to what might otherwise be an unfamiliar or unverified offering. This is especially true in industries like insurance, where young people often face higher costs and confusion about what options are available to them.

Additionally, fraudsters often use the same platforms and techniques as legitimate entities. Social media content can appear highly professional and convincing, making it difficult for users to tell the difference between legitimate offers and scams.

The insurance industry should focus on building partnerships with influencers who are trusted by their target demographic. Insurers should ensure influencers are transparent about their collaborations and compensation.

By integrating influencers into fraud prevention campaigns, the insurance industry can foster trust, raise awareness, and educate potential customers in a way that resonates with younger generations.

For example:

  • “How to spot a scam” series: influencers can create short video clips or stories outlining common red flags of fraudulent schemes, such as unusually low insurance rates or requests for payment via unconventional methods. They could also share personal stories or testimonials about avoiding scams; and

  • Insurance 101” guides: influencers could host a series of posts, stories or even live question-and-answer sessions where they walk through how insurance works, why it is important to choose the right provider and the consequences of falling for fraudulent offers. This helps demystify insurance for young people and creates transparency in a typically complex subject.

Fraud awareness

In addition to validating products, influencers can actively educate their audience about the risks associated with online scams. By using their platforms to raise awareness about fraudulent schemes, such as ghost brokers, they can equip their followers with the knowledge needed to make more informed decisions.

Young people engage with interactive content and insurers can leverage this by creating dynamic, educational campaigns. These campaigns, when thoughtfully executed, can shift the narrative on insurance and fraud prevention, positioning influencers as positive forces for change in the industry.

Campaigns should also educate users about how fraudsters use technologies like artificial intelligence to manipulate content and create false metrics.

As previously mentioned, it can be difficult for users to tell the difference between legitimate offers and scams. One effective way to address this challenge is by integrating clear, simple messaging that helps users identify red flags. Slogans like “if it sounds too good to be true, it probably is” can be effective.

Consumers may also become sceptical of any offers, even legitimate ones. This scepticism can make it harder for educational campaigns to gain traction.

One way to overcome this is by partnering with influencers or reputable organisations to lend credibility to the campaign. Influencers can also offer personal insights or real-life examples of avoiding scams.

Educational messages

With the vast amount of content on social media, it can be difficult for educational messages to stand out. To combat this, campaigns need to be consistent and multi-faceted.

For example:

  • Short-form videos: offering quick tips on fraud prevention in a digestible format;

  • Interactive content: polls, quizzes, and challenges can increase engagement; and

  • Cross-platform integration: messaging should be spread across platforms where young people are most active.

While using the same platforms as fraudsters presents challenges, it also offers significant opportunities. By addressing these challenges with consistent messaging, building trust through credible partnerships and ensuring campaigns are well funded, the insurance industry can create effective fraud prevention initiatives that resonate with young drivers.

Through targeted campaigns, live discussions and informational posts, insurers can reach young and vulnerable audiences, empowering them to recognise and avoid scams.

If insurers and other stakeholders focus on raising awareness and fostering a sense of community regarding consumer protection, they can effectively counterbalance the presence of fraudsters. By embracing these platforms for positive engagement, there is a real chance to not only protect users but also to build lasting relationships based on trust and credibility.

Services