Ghost brokers are in the business of selling fake or defrauded insurance policies to individuals, for what appear to be very low cost premiums. This happens in a couple of different ways: for instance, it could involve the creation of fake policy documents that impersonate a legitimate insurer. Or a fraudster could use synthetic or stolen identity data to purchase a policy from an insurance carrier, before reselling it to unsuspecting consumers who then cancel their coverage. In either case, ghost broking results in unsuspecting consumers believing they have proper coverage, when in reality they have bought fraudulent policies and are therefore exposed.

Discerning fraud from genuine traffic with Device ID

iovation, a TransUnion Company was able to help – a UK-based price-comparison service that generates over one million quotes per month for consumers – with the ghost broking challenges it was facing, since stolen identities have become so readily available. By integrating iovation’s Device ID with’s personal ID check, can now easily discern fraud from genuine traffic, resulting in a decrease in fraud by 60%.

With increasing skill and know-how, fraudsters are able to change device attributes (think device type, profile, location, language, etc.). To combat this, device intelligence investigates the origin of questionable policies, and iovation’s fraud-prevention tools enable companies to recognize signs of criminal activity.

The power of community

It also shouldn’t be understated that collaboration is one of the most powerful weapons for fighting fraud; businesses are simply unable to solve such large issues in isolation. Through iovation’s consortium, insurers can share their experience of confirmed fraud reports and work together to better understand evolving threats. One company that benefited from this is AA Insurance, after a ghost-broking fraud ring exploited their no-claims bonus. Once AA Insurance implemented iovation’s Device ID and started collaborating with other insurance companies within iovation’s consortium, it was able to uncover the fraud ring and identify its associated devices. The London Police was even able to prosecute five members of the ghost broking ring, with the help of iovation’s device reputation tools.


Have questions about what you can do to protect your consumers? Learn more about iovation’s device reputation and fraud-prevention software to get started.