Hundreds of Irish motorists scammed by 'ghost brokers'

Image source, Getty Images/Baona

Image caption, Ghost brokers are fraudsters who sell invalid policies to unsuspecting motorists

More than 600 motor insurance policies are to be cancelled because they were arranged fraudulently by so-called "ghost brokers" in the Irish Republic.

Ghost brokers is the term used for fraudsters who pose as legitimate insurance agents to sell invalid policies to unsuspecting customers.

Gardaí (Irish police) said they are carrying out a "comprehensive investigation" into the practice.

One man is due in court in Trim, County Meath, on Friday.

He has been charged with a number of offences under Section 6 of the Criminal Justice (Theft and Fraud Offences) Act, 2001.

Gardaí said they have been working with the Insurance Federation of Ireland and several insurance firms over the past few months to identify potential ghost broker fraud.

They added the cancellation of more than 600 policies was a "direct result" of this operation.

'Stolen credit cards'

The scam often involves ghost brokers advertising insurance offers on social media that are well below the market price.

They take money and personal information from motorists, but then falsify the customer's insurance details on applications and pay for the policy with a stolen credit card.

When the insurance provider finds out that the payment method was illegal, the policy is cancelled and the unwitting motorist is left without cover.

On Thursday, Irish public broadcaster by ghost brokers.

Gardaí advised anyone with concerns about the legitimacy of their motor insurance policy to contact their provider in the first instance.

They added: "If anyone has concerns about the bona fide of their insurance broker they should check with the Insurance Brokers Federation at ."