'Fraudsters took out car insurance in my wife’s name’
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Dear Which?,
My wife has received some letters about car insurance policies that have nothing to do with her. It seems they were applied for via a broker called BGL Insurance.
We’ve notified BGL and the insurers to let them know this must be a case of identity fraud.
What’s particularly confusing is that these applications were processed even though my wife has a CIFAS protective registration warning on her credit file.
How could this happen?
Mr Gow, Northamptonshire
Put to Rights
Michael Tomlinson, Which? Money Helpline adviser, says:
This sounds like a form of identity fraud known as ghost broking, whereby car insurance policies are applied for using someone else’s details and are then sold cheaply to unsuspecting drivers.
Although you were able to get these policies cancelled by the insurers, there will be a few cars on the road with worthless insurance policies.
CIFAS protection
It’s disappointing that CIFAS protective registration hasn’t protected your wife in this case. Costing £25 for two years, it places a warning flag against your name in CIFAS’ National Fraud Database.
When applications for credit cards, loans and, in some cases, insurance, are taken out in your name, companies should carry out extra checks. That’s provided the organisation uses CIFAS – around 600 firms have signed up, but BGL Insurance Group isn’t one of them.
When we contacted BGL Insurance, a spokesperson apologised to your wife, noting: ‘We take our fraud detection and prevention responsibilities seriously to protect our genuine customers.’
It said it has an in-house fraud detection system and works closely with insurer partners, industry bodies, such as the Insurance Fraud Bureau, and police forces.
Your wife’s experience demonstrates that CIFAS protective registration can be compromised when firms don’t use it.
Other readers should bear in mind that the extra checks needed can also make it more difficult to apply for financial products.
Monitor your credit report
Another way to spot identity fraud is to check your credit file regularly.
If you don’t recognise any new applications or searches listed on there, contact the company in question immediately – it has a legal responsibility to correct the record and cover any losses incurred.
Need to know:
- Find out more about ghost broking in our full investigation.
- Get advice on how to report a scam.
- Check out our latest car insurance reviews.
Get in touch. If you've got a consumer rights problem you need put right email us at yourstory@which.co.uk
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