LOGAN — The Utah Insurance Department’s Fraud Division is reporting an increase in fake auto insurance policies being marketed to the Hispanic community using WhatsApp. As word has spread in the community that auto insurance policies can be purchased for a lower price, many people have fallen for this scam.
According to a press release, the unknown sellers, who investigators believe to be located outside of the United States, have been marketing fake insurance policies to unsuspecting individuals. Victims pay for the insurance policy through WhatsApp, and the seller sends them a forged certificate of insurance. The fake policy lists a local insurance agent as their agent. This agent is real, but is the victim of identity theft and is not the person selling the fake policy.
Officials said those who purchase fake insurance policies have not only lost money paying for a fake insurance policy, but may also have their vehicle registration revoked for not having valid insurance. Police may impound their vehicles for not having insurance and for revoked registration.
The Utah Insurance Department advises consumers to purchase insurance policies from legitimate insurance agents and not through WhatsApp. If you have purchased an insurance policy using WhatsApp, please contact the insurance company directly to verify if the policy is legitimate.
Residents can also determine whether or not an insurance agent is licensed to sell insurance in Utah by going to Utah Insurance Department’s website — https://insurance.utah.gov.