SCORES of Hampshire drivers are feared to have been caught up in a major car insurance scam that will cost them thousands of pounds, police have warned.

At least 150 people are thought to have been scammed out of more than £60,000 by signing up for insurance via a fake website.

Fraud squad detectives say the “ghost broking” ring have duped hundreds of unsuspecting people who have been tricked into handing over money.

And to make matters even worse, the scam has left victims open to criminal prosecution, fines and even having their car seized if they are found to be driving uninsured.

Bosses from the City of London police are leading the inquiry and said 50 victims have so far been uncovered, having been tricked into buying bogus insurance.

They came forward after discovering their car insurance policies were invalid.

Officers today warned that at least three times that number are feared to have been conned – most of them living in Hampshire and Dorset.

Officers were last night quizzing a 33-year-old man from Andover, arrested on suspicion of fraud by false representation and money laundering.

Police say their investigation centres on Personal Touch Insurance which ran a sham website advertising cheap deals which turned out to be false.

Officers from Action Fraud initially alerted police after customers began logging their concerns to the crime reporting centre late last year.

The National Fraud Intelligence Bureau (NFIB) Cyber Prevention and Disruption Team identified the company’s website as bogus and shut it down.

Detective Sergeant Mark Forster said: “Ghost broking is a priority for us which we are tackling alongside the insurance industry and local law enforcement.

“The consequences for motorists who fall victim to these scams can be dreadful, so it is vital that drivers shopping for car insurance online, or through other means, question what they are being offered to ensure they get a real deal.”

Anyone who has bought insurance from Personal Touch is asked to visit actionfraud.police.uk or call police on 101.

Information on suspected ghost brokers can be reported confidentially through the Insurance Fraud Bureau’s Cheatline on 0800 422 0421.