Victims gave the broker a down payment and in return were issued insurance cards as evidence of coverage. The broker never validated the policies by forwarding the applications and the premiums to the insurance company. Because the cards were valid for a few days, victims were able to use them to register their cars. According to authorities who uncovered the scheme, most buyers thought they had purchased a legitimate car insurance policy. Recent immigrants from Asian countries do not realize that unscrupulous individuals purposely set out to confuse people who don't speak English well.
Insurance contracts are complicated.
They are usually written in English. Newcomers probably have little or no knowledge of insurance laws and regulations. Scam artists prefer to prey on unsophisticated consumers. I t's natural for newcomers to feel more comfortable around people of the same background, and to trust people who speak the same language. Almost everyone prefers to do business with someone who has been referred to them by a relative, friend or co-worker.