Insurance brokerage Everywhen has warned that ‘ghost’ brokers pose a significant fraud risk to small to medium enterprise (SME) fleets.
Ghost brokers pose as middlemen for well-known insurance providers and claim to offer discounted cover, but commit insurance fraud by forging cover and policy documents, giving the legitimate insurer fake customer details to achieve the lower premium, before cancelling the policy.
Everywhen warned that this puts SMEs looking for easy, quick insurance solutions at risk of being uninsured.
A 2025 report from Aviva found that ghost broking cases have increased by 22% over the past two years.
Everywhen advised that SMEs should ensure their insurance broker has an FCA registration number, and should be wary of brokers that only advertise on social media, request payment via bank transfer and provide documents via screenshots.
It also warned that ghost brokers utilise pressure-selling techniques, such as limited time offers.
Measures that SMEs can take include reaching out to the insurer directly to check if a policy is valid, consolidate all business insurance, arrange insurance on behalf of employees for company vehicles and add a second line of approval for insurance.
A spokesperson for Everywhen said: “Ghost broking is evolving and becoming a growing threat with serious financial and reputational consequences for small business owners.
“A recent report from Aviva shows a 22% increase in ghost broking cases over the last two years. With the average victim losing more than £2,000, it is a real problem that needs to be taken much more seriously by SMEs.
“A sure-fire way to avoid ghost brokers is to work with a trusted insurance partner. Look for an insurance broker who is upfront about who underwrites the policy, explains cover without lots of confusing insurance jargon, provides clear verifiable documentation and understands the unique risks that SMEs face.”
