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Urgent warning for drivers over ‘devastating’ insurance trap that could cost you thousands of pounds extra
We explain how to spot a spoofed website
DRIVERS are being urged to double check their insurer’s website before handing over personal details following a surge in online insurance scams.
A growing number of motorists have lost thousands of pounds after unwittingly handing personal details to fraudsters posing as their insurer, according to the Association of British Insurers (ABI).
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Scammers are targeting those who have a car accident and try to find their insurer’s phone number online.
They pay to appear at the top of Google, above the actual insurer’s website, and mimic the genuine web page so they appear identical.
Customers then call the number listed on the fake site or input personal details into the site and unknowingly sign themselves up to expensive services costing them thousands of pounds.
For example, they might end up paying inflated repair costs compared to if they went through their insurer or a genuine garage.
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Pete Ward, head of claims counter fraud at insurer Aviva, explained: "Costs usually include fees for recovery, storage, and hire, can start
accruing immediately after the initial call, and can reach tens of
thousands of pounds in total."
This type of fraud, known as "ad spoofing", has grown in prominence over the last few years as insurance scams have shifted online, the ABI said.
As a result, it said insurers are having to hugely increase their spending to counter fraudulent listings on Google - at a time when car insurance premiums are already rising due to increased costs for insurers.
While there is currently limited data on how many people have been ripped off, the ABI said it has seen examples of people being pursued for more than £50,000 after signing up to rogue services online.
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And it's not just panicked motorists being duped - the ABI said in one case, paramedics who came to help one customer in an accident were misled by a website after Googling the man's insurer for him.
The ABI's own research found over 81% of insurance customers had never heard of ad spoofing before, putting them at risk of being duped.
Mark Allen, head of fraud and financial crime at the ABI, told The Sun: “People think of cold-calling when they think of being scammed, but in reality 90% of insurance fraud is perpetrated online and the results can be devastating.
“When using a search engine to find your insurer, always double check the URL and look for extra or missing letters - scammers will typically change one digit to try to trick you.”
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DUPED AT THE ROADSIDE
The ABI shared two case studies with The Sun who had been victims of ad spoofing after having a car accident.
"Alan's" case
The first case study, known as Alan, contacted his insurer for an update on his claim around one week after having an accident.
But Alan's insurer said no claim had been reported, so it had not progressed any repairs to his car.
An investigation later revealed that paramedics who attended the accident scene of his crash Googled's Alan's claims number for him, but clicked on a spoof advert by mistake.
Alan then called the number listed on this site, but was directed to an accident management company impersonating his insurer.
Retiree Alan had signed documents thinking it was for his insurer, but in doing so he had actually signed up to credit hire car and repairs that he was now personally liable for.
The insurer took over and dealt with the repairs under his policy after investigating the case.
"Lucy's" case
Another case, known as Lucy, had her car insurance claim "hijacked" by a claims management company and ended up being signed up for an expensive car hire service she didn't need.
After searching online for her insurer, Lucy clicked the top result, which looked like her insurer's website, and the firm sent her documents to fill in.
She signed an agreement for a courtesey car that she was under the impression her insurer would pay for.
However, it later transpired she had signed an agreement she was liable for and would now have to pay for out of pocket - and at a much more expensive rate than she could have found elsewhere, with daily rates hundreds of pounds higher than the average.
After Lucy alerted her insurer, it got involved the defeat the fraudulent firm's claims.
DRIVING UP COSTS
Another problem caused by the rise in online scams is that insurers themselves are having to increase the amount they spend on advertising to try to combat fake listings.
Anyone listing on Google can bid on key words, such as an insurer's name or the terms "car insurance" or "insurance claim", so that their sponsored listing appears at the top of the search results.
But this means that when someone searches online for their firm, a fraudulent business could appear higher than the genuine firm by paying to appear first.
The ABI said insurers are now in a bidding war with these fraudulent firms as they fight to push the fake listings further down.
It said that between 2021 and 2022, one insurer, which couldn't be named for commercial reasons, had seen a 780% increase in advertising spend, while between 2020 and 2021 it had increased a whopping 3,600%.
It comes at a time when car insurance premiums are already soaring for customers as insurers grapple with increased repair costs.
In the first three months of this year, a typical monthly car insurance premium rose to £139.45 - a staggering 67.6% higher than the same period in 2022, according to data from MoneySupermarket.
Mr Allen said: "Mr Allen said: "Costs have soared to outbid these claims management firms, and that adds to insurers' overall costs."
"That ultimately has an impact on both insurers and customers."
We have contacted Google for comment.
How to protect yourself from 'ad spoofing'
Experts have warned panicked drivers to take a moment to ensure the firm they are calling is their genuine insurer.
Before submitting any personal information to a website, double check the URL is genuine and doesn't contain any spelling mistakes or added words.
Try searching for the number listed on the website online separately to see what comes up.
Mr Allen recommended that drivers carry their insurer's claims contact number with them in the car so they don't need to use a search engine to find it in a moment of panic.
You can find your claims number on the policy document you originally received from your insurer.
If you think you may have been a victim of ad spoofing, tell your actual insurer immediately and explain what happened.
They may be able to help intervene and stop things getting worse.
You also need to tell your insurer so it can help get your actual claim underway.
Other types of insurance fraud to beware of
Ad spoofing is particularly high risk for motorists as it typically plays on the emotions of someone who has just had a car accident.
However, there are several types of online insurance fraud that are increasing in prevalence.
The ABI said "account takeovers" are also common, where someone comes across your insurance account and logs in and then makes a fraudulent claim on your behalf.
Insurance fraud is a serious criminal offence, so it's important to report if you think you've been a victim of a scammer so you aren't held responsible for making the false claim.
Account takeovers can also involve fraudsters changing the bank details so they receive your insurance payout instead.
The ABI said it had found 81% of customers had never heard of account takeovers.
Meanwhile, it warned that "ghost broking", where scammers sell fake insurance products, and "data farming", where cold-callers get personal details from you and then sell them on, are both common.
You can report any instances of fraud to Action Fraud on 0300 123 2040 or online at actionfraud.police.uk.
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You can also report it to the Insurance Fraud Bureau via its confidential "cheatline" on 0800 422 0421 or on insurancefraudbureau.org.
Doing so helps these organisations keep track of any increases in certain types of fraud and learn how to tackle them.
How to get cheap car insurance
CAR insurance is an essential cost that you hope to never use but will need to cover the costs of theft or damage to your vehicle.
It's a legal requirement to have car insurance, and going without it could land you with a £300 fine, six penalty points on your licence and even a criminal conviction.
But there are several ways to slash your premiums.
Pay upfront
Insurers give you the choice of paying for insurance monthly or upfront.
Paying monthly spreads the cost of your cover but the insurer adds interest charges which means the average motorist pays around ten per cent more overall.
If you pay for your car insurance annually you don’t pay any interest.
A typical motorist can save up to £225 a year by paying in one go, according to comparison site MoneySuperMarket.
Increase your excess
The excess is what you agree to pay each time you need to make a claim on your policy.
You can usually choose your own excess when setting up a policy and it can be as low as £100 and as high as £500 or more.
The higher your excess, the lower your premium and vice versa.
This means you could bring the cost of your insurance down by agreeing to pay more if you do need to make a claim.
But before you hike your excess, make sure you would be able to pay in the event that you do need to make a claim.
Tweak your job
Certain jobs are seen as more risky than others for insurance purposes.
Making small but accurate changes to your job title can save you money.
For example, swapping your role from "chef" to "caterer" can save you £20, comparison site GoCompare found.
And changing your role from "fast food delivery driver" to "delivery driver" could save you £40.
But lying about your job could invalidate your policy so make sure any changes are legitimate and accurate.
Shop around
Not all comparison sites have the same range of insurers so to get the best price it’s a good idea to check two or three from Go Compare, Comparethemarket, MoneySupermarket and Confused.com.
Insurer Direct Line is also not on comparison sites so check its prices directly.
You can also get a free cash bonus by going via a cashback site such as Topcashback or Quidco.
Save the date
Renewing your car insurance sooner rather than later could save you some cash.
New cover becomes more expensive the closer you get to the renewal date.
But you can buy your car insurance up to 29 days before the policy start date and 'lock in' the price you're quoted on that day.
A typical driver can save up to £265 buying new cover at least 27 days before their current policy ends, according to Go Compare.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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