Ghost broker jailed after forensic investigation

A former insurance broker from Hull has been jailed after admitting to setting up fake car insurance policies for hundreds of people. Nigel Fox used his prior insurance broking knowledge to set up the policies and to create fake no claims discount letters, which were used to significantly lower the price of premiums.

Fox was investigated by the City of London Police’s Insurance Fraud Enforcement Department (IFED) after they received a referral from the Insurance Fraud Bureau (IFB) in 2015.

The IFB had discovered that a significant number of motor vehicle policies were being set up using similar details, such as the email, internet protocol (IP) address and credit card details. This led to a forensic investigation, which revealed that his fraudulent activity had been going on since 2009.

When IFED took up the case, they found that Fox had acted as a ‘ghost broker’ and used false personal details to incept numerous fake motor insurance policies for people. He had also created fraudulent no claims discount letters, which he submitted to insurance firms to significantly lower the price of premiums.

Following the forensic investigation, which included research by forensic accountants into his bank accounts, documentation and mobile phone records, IFED estimated that Fox had profited from his crimes to the tune of around £25,000.

One of the investigating officers said that Fox had defrauded a number of innocent members of the public with offers of fraudulent cheap insurance and exposed them to the direct harms caused by ghost broking. He added that the case is just one in a series of investigations where the IFB has shared valuable intelligence with IFED