Fake auto insurance scams target Utah’s Hispanic community

SALT LAKE CITY (ABC4) — Fraudulent auto insurance policies are being marketed to Utah’s Hispanic community, according to the Utah Insurance Dept.

These marketing tactics are typically done through WhatsApp or by fake agents via word-of-mouth, officials said. People who purchase these fake auto policies not only lose money by paying for the policy, but may also have their vehicle registrations revoked.

This, in turn, could result in their vehicles being impounded.

“Unknown sellers, who we believe to be located outside of the United States, continue to market fake insurance policies to unsuspecting victims,” said Fraud Division Director Armand Glick. “Victims make payment for the insurance policy through WhatsApp, then the seller sends them a forged certificate of insurance. The fake policy lists the identity of a local Utah insurance agent as their agent. While the name of the agent is real, his identity has been stolen, and he is not the person selling the fake policy.”

The Fraud Division is currently investigating a person acting as an unlicensed agent who has sold “hundreds of policies” over the phone, said Armand Glick, Fraud Division Director. The individual’s phone number is being circulated by word-of-mouth to others in the community because he can get lower insurance rates.

Here’s how it works. This suspect enters false information online to purchase real insurance policies that are then given to the consumer. While the policies are actually real, because the premiums have been lowered using false info, insurers are “not likely to honor these policies” if you are involved in an accident, according to the Insurance Dept.

Officials are asking that the public only purchases insurance policies from legitimate agents and sources, not through WhatsApp or phone numbers from others.

“If you have purchased an insurance policy via WhatsApp, please contact the insurance company directly to verify if the policy is legitimate,” a release from the Insurance Dept. states.

If you need help figuring out if an insurance agent is licensed to sell insurance in Utah, please visit the Utah Insurance Dept. website here.