The Insurance Fraud Bureau has published figures showing a 50% rise in ghost broking in the past two years. It said criminals were increasing their presence on social media sites and warned that they were targeting drivers insuring a car for the first time or those seeking cover while learning to drive.

Ursula Jallow, director at the IFB, said: “New drivers are caught out by ghost brokers because they face higher premiums and have had less experience in purchasing insurance policies for themselves, which unfortunately means they are more likely to be attracted to car insurance deals, that are too good to be true.

“The impact is devastating. We’ve seen victims lose thousands of pounds, have their identities stolen, their confidence and self-esteem shattered, and in some cases, they have even had their car seized for driving uninsured.

“It’s really important that we spread the word to help protect young drivers from ghost brokers. We’re proud to be supported by the Stop! Think Fraud national campaign, in partnership with the ABI and IFED, to bring attention to this issue.”