Utah insurance regulators are warning residents about a surge in fraudulent auto insurance policies being marketed to members of the Hispanic community through the messaging platform WhatsApp.
According to a recent announcement from the Utah Insurance Department’s Fraud Division, scammers — believed to be operating from outside the United States — are using the app to sell fake insurance policies at unusually low prices.
Victims report paying for coverage through WhatsApp, only to receive counterfeit insurance certificates, according to a report by Cache Valley Daily. These bogus documents often list the name of a legitimate Utah insurance agent, who officials say has no connection to the scam and is also a victim — of identity theft.
Consumers who unknowingly purchase the fraudulent policies not only lose their money, but may face serious consequences for driving without valid insurance, officials said. That includes vehicle registration revocation or impoundment by law enforcement.
“Anyone who buys auto insurance through unofficial channels like WhatsApp risks significant legal and financial trouble,” the department said in the release.
Officials urge residents to verify the legitimacy of any insurance purchase by contacting the insurer directly. They also recommend using only licensed agents when buying policies. Utahns can check whether an agent is licensed through the department’s website at insurance.utah.gov.
