Insurance fraud experts have warned that drivers could face up to £13,000 in unsolicited fees from sophisticated scammers who create fake search engine advertisements mimicking legitimate insurers.
The Insurance Fraud Bureau (IFB) has launched a national campaign to combat these “paid ad spoofing scams”, where fraudulent firms deliberately pay for search results that impersonate genuine insurance companies.
The deceptive practice particularly targets those who have been in road traffic collisions, with victims unknowingly entering into costly third-party agreements whilst believing they are speaking with their actual insurer.
These scams typically appear in mobile phone search results, designed to encourage quick calls from unsuspecting victims and often use vague terminology to sound like legitimate insurers or suggest they are affiliated with them.
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Once contact is made, victims are asked for personal details to arrange services like replacement vehicles or claims processing.
The scam can go undetected for weeks, with victims signing up for multiple services without realising they’re not dealing with their actual insurer.
In some severe cases, victims have faced demands for over £50,000 in unsolicited fees, while their personal information may also be stolen for further fraudulent activities.
Recent YouGov research reveals that only 18 per cent of people are aware of paid ad spoofing scams, leaving millions of insurance customers vulnerable to fraud.
Those who have been in road traffic collisions are particularly at risk, as they may be in a distressed state and not thinking clearly when seeking to make a claim.
Many victims believe their comprehensive motor insurance covers all services, unaware they’re agreeing to costly third-party arrangements.
The financial burden can fall entirely on victims if they’re found at fault in the collision, with charges that would otherwise have been covered by their insurance policy.
Jon Radford, Head of Intelligence, Investigations and Data Services at the IFB, described paid ad spoofing as “a malicious and calculated practice which can have a devastating impact on victims.”
He added: “Unscrupulous firms will deliberately pay for search engine ad results that misrepresent genuine insurers.
“Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything.”
He urged motorists to “save your insurer’s contact details so you have it to hand if needed and report any signs of paid-ad spoofing scams to our confidential CheatLine”.
Pete Ward, Head of Claims Counter Fraud at Aviva, echoed Radford’s calls, warning of the severe consequences for customers who unknowingly respond to fake ads.
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He said: “Imagine the concern when customers realize they don’t know who they are dealing with, what they have agreed to, or the implications of these agreements.
“This confusion puts customers at risk of extreme financial harm: they enter agreements for services like recovery, storage, repair, and hire, believing these costs are covered by their insurance.”
