Known as ghost broking, victims are targeted through websites, on social media and on university campuses.
They are offered a car insurance policy at a greatly reduced rate, often paying a large sum of money upfront.
In most cases the driver doesn't realise they aren't insured until they are in a crash or stopped by police.
They are then liable for six points on their licence and have to pay any damage costs out of their own pocket.
Detective Chief Inspector Dave Wood from the Insurance Fraud Enforcement Department offers some tips on how to spot a fake insurance scam.
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