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. But no matter who referred you to an insurance agent or company, it's important that you check them out. If you take a few steps outlined here, you can limit the odds of becoming a victim of insurance fraud. If an insurance policy is issued by a company that is not licensed to do business, any paperwork or policies that it hands out are probably not worth the paper they are printed on.