Paid-ad spoofing occurs when individuals searching for their insurer online inadvertently contact a third-party firm instead
The Insurance Fraud Bureau (IFB) has issued a stark warning to the public about the dangers of paid-ad spoofing scams, revealing that victims could face up to £13,000 in unexpected fees. The scam, which involves fraudulent firms paying for search engine advertisements that mimic genuine insurers, has been on the rise, leaving unsuspecting consumers vulnerable to significant financial losses.
Paid-ad spoofing occurs when individuals searching for their insurer online inadvertently contact a third-party firm instead. These firms pose as legitimate insurers and lure victims into costly financial agreements under the pretense of assisting with their claims. Many victims do not realize they have been misled until they receive hefty invoices for services that should have been covered by their insurance policies.
Widespread Risk
According to a recent YouGov survey, only 18% of people are aware of paid-ad spoofing scams, highlighting a widespread lack of awareness. Given that millions rely on insurance services daily, a vast number of consumers remain at risk. In response, the IFB has launched a national campaign to educate the public about the scam and encourage individuals to report suspicious activity via the organization’s confidential CheatLine.
Paid-ad spoofing occurs when individuals searching for their insurer online inadvertently contact a third-party firm instead
Jon Radford, Head of Intelligence, Investigations & Data Services at the IFB, emphasized the serious implications of the scam.
“Paid-ad spoofing is a malicious and calculated practice that can have a devastating impact on victims. Unscrupulous firms deliberately manipulate search engine ads to misrepresent genuine insurers. People who have just experienced a traumatic road accident are particularly vulnerable. When they call what they believe to be their insurer for support, they unknowingly enter into legal agreements that could cost them thousands. We urge the public to save their insurer’s contact details in advance and report any suspected spoofing activity,” Radford said.
A Firsthand Account: Amy’s Story
Amy, a 25-year-old camera assistant from Liverpool, recently fell victim to a paid-ad spoofing scam. While driving home after visiting friends in early 2024, she was involved in a road traffic collision caused by another driver. In a shaken state, she searched for her insurer’s contact information on her phone and called the number displayed in a sponsored advertisement. Unbeknownst to her, the number belonged to a third-party claims management firm.
Initially, the representative on the phone seemed helpful, but Amy found it strange that they did not request her policy number. When she shared the experience with her father, Carl, a counter-fraud manager at Aviva, he quickly realized she had been targeted by a paid-ad spoofing scam. Together, they spent hours making urgent phone calls to withdraw from the fraudulent financial agreements before she incurred charges.
Reflecting on her experience, Amy warned others: “I never thought I would fall for something like this, but these people are very skilled at deception. They target you when you’re vulnerable. It’s crucial to double-check everything when searching for your insurer online.”
Industry Efforts to Combat Fraud
Pete Ward, Head of Claims Counter Fraud at Aviva, expressed concerns about the growing threat of misleading online advertisements and their financial impact on consumers.
“The scourge of misleading online ads affects all motorists and insurers. Prevention is key, which is why we are working with the IFB to highlight the serious financial implications of paid-ad spoofing. We advise drivers to save their insurer’s claims number in their phones or keep it in their vehicles. If customers mistakenly respond to misleading ads, we take immediate action to investigate and share intelligence with the IFB and regulators,” Ward said.
Aviva has successfully monitored and reported fraudulent ads that violate Google’s policies, resulting in the removal of deceptive ads and associated websites. Ward emphasized that customers often contact insurers to make a claim, only to discover they never actually spoke to their insurance provider.
“Imagine the distress when customers realize they have signed agreements without fully understanding the financial consequences. Many assume their fully comprehensive insurance covers everything, but because they unknowingly engage with third-party firms, they end up agreeing to additional services that could cost them thousands. This confusion puts consumers at significant financial risk,” Ward added.
Paid-ad spoofing is a malicious and calculated practice that can have a devastating impact on victims. Unscrupulous firms deliberately manipulate search engine ads to misrepresent genuine insurers. People who have just experienced a traumatic road accident are particularly vulnerable.
Jon Radford, Head of Intelligence, Investigations & Data Services, IFB
How Paid-Ad Spoofing Scams Work
Paid-ad spoofing scams operate by targeting individuals searching for their insurer’s contact details. Fraudulent firms pay for sponsored search engine ads that closely resemble those of legitimate insurers, making them appear at the top of search results. These deceptive ads are particularly prevalent on mobile searches, where users are more likely to click on the first visible contact number.
Once victims call these fraudulent firms, they are often misled into believing they are speaking with their insurer or an affiliated partner. The firms use vague terminology to maintain the illusion of legitimacy. Victims may then provide personal details and agree to services such as vehicle recovery, storage, or replacement hire cars, unaware that these services come with exorbitant fees.
The Financial Fallout
The financial consequences of paid-ad spoofing scams can be severe. If the at-fault driver’s insurer disputes the excessive charges, the victim may be held liable for thousands of pounds in fees. In some cases, victims have faced relentless calls from third-party firms demanding payment for services they unknowingly agreed to. One individual was even pursued for over £50,000 in unsolicited charges.
In addition to financial loss, there is growing evidence that some fraudulent firms involved in paid-ad spoofing engage in identity theft, using victims’ personal information for further fraudulent activities.
