£3k credit card fraud - all to insurance companies

money_saving_matt

I have just been contacted by my bank as they have detected potential fraudulent activity on my credit card. After logging into my online banking, it turns out fraudsters have used my card to make a dozen or so payments to car insurance companies such as Swinton, BeWiser and a couple of others.

The bank have cancelled the charges and the card so everything should be sorted now, my question is really about the fraud itself - what are the fraudsters doing here? Are they masquerading as insurance brokers and using my card details to buy the policies? For example:

1) Customer approaches broker looking for insurance
2) Broker uses my card details to buy policy from Swinton
3) Broker collects payment from customer
4) Broker issues customer with insurance documents
5) Bank cancels charges on my card, customer is left unknowingly uninsured?

Is this how the scam works?

eddddy

It could well be what you describe. If you google 'ghost brokers', you'll find various variations of this scam.