The fraudulent brokers are said to be taking advantage of the spiralling cost of legitimate policies
Drivers are being warned to watch out for an insurance scam which involves the selling of fake policies.
According to the Irish Independent, scammers are targeting younger drivers, non-nationals and returning emigrants who are struggling with costs and are not as familiar with the market.
Cases have been reported to the Garda National Economic Crime Bureau, the paper reports.
Charlie Weston, the Irish Independent's personal finance editor, spoke to The Pat Kenny Show about the so-called 'ghost brokers'.
He explained: "They're essentially playing on the fact that motor insurance, as we know, the cost of it has just spiralled to a ridiculous level for a lot of people.
"These fake brokers are playing on that, and they're producing dodgy insurance policies. They make up names, and they make up details about a driver."
The 'ghost brokers' often pose as middle men. They may sell an insurance policy for a completely different category of driver, or even sell counterfeited documents.
As a result, those who buy the fake policies may be driving illegally without realising it.
Drivers are being advised to keep an eye out for potential warning signs - such as demands for cash up-front, 'pop-up' shops, or 'unsophisticated' websites offering deals or policies.
Charlie added: "You got to ask yourself questions - if it looks like a really good discounted deal, is it a good deal, or is it a fraudulent insurance broker pretending to be registered by the Central Bank and actually flogging you an invalid insurance policy?"