How Does A Ghost Broker Operate?

You don't want to be in the shoes of the victim when money is involved. It’s true that people fall victim to insurance scams. Someone might pose as an insurance broker or agent and sell you a cheap or fraudulent policy. You might think that you are getting a legitimate coverage from a licensed insurance company. However, the reality is different. The scam is discovered when you file a claim. 

Also known as “ghost brokers”, these are false insurance brokers or agents. To know how your finances can be at risk, you need to know how they operate. You should also know how to find insurance brokers in Brisbane selling legitimate policies. 

Let us help you in avoiding this type of fraud. 

Here Is How Ghost Brokers Operate  

A ghost broker applies for a genuine policy, collects premium payments and shortly after, cancels the policy. You don't even know that your policy has been cancelled. This is how they deceive unsuspecting customers. The customer thinks that he has got legitimate coverage. However, the cancellation of the policy is discovered when the customer makes an insurance claim.

A ghost broker uses messaging apps and social media sites to lure his victims. He advertises cheap insurance plans. The policy is much cheaper than the policies offered by competitors. 

The following tips can help you in spotting and avoiding a fraudulent insurance agent: 

• Stay away from an insurance agent advertising cheap insurance policies on messaging apps and social media sites.
• Avoid working with an agent that solely uses email or social media to communicate. Ghost brokers do not list their phone numbers. Even if they do, they are difficult to approach via phone calls. They often ask to make cash-only payments in person, via some cash-transfer mobile app or through social media. 
• A ghost insurance agent does not let you directly communicate with the insurance carrier. He just promises to secure the right insurance policy for you.  
• Do not sign any document without making sure that you are working with one of the licensed insurance brokers in Brisbane.

When you are scammed, you lose money and cannot file a claim. So, stay alert while buying insurance policies.