Ghost brokers that sell fake car insurance policies are a growing threat, driven by what they see as a soft target for fraud.

These brokers are fraudsters who sell useless car insurance policies to the unsuspecting, often before disappearing.

The ghosts operate in several different ways. These include selling forged insurance policies, or taking out a real policy which they then cancel, pocketing the refund that should be made back to the consumer.

Often victims of ghost brokers will be unaware they have no valid insurance and only realise when a claim is made.

A City of London Police spokesman said it is illegal to drive uninsured and so victims of ghost brokers face points on their driving licence and the possible seizure of their vehicle. They are also left open to claims costs if involved in a crash.