Tow truck scams on the increase

CA DEPARTMENT OF INSURANCE

The California Department of Insurance issued a public service announcement last week warning California drivers about an increase in scams involving tow truck companies targeting car accident victims where vehicles are being held hostage for cash.

The scam has become prevalent in Southern California, and the Department’s Inland Empire Automobile Insurance Fraud Task Force, has investigated multiple cases including one that has resulted in charges against 16 Southern California residents.

This task force investigation found the auto fraud ring allegedly conspired together to create fraudulent insurance claims to illegally collect over $216,932. The investigation discovered the large-scale organized auto insurance fraud ring was engaged in multiple types of schemes including holding vehicles hostage and collusive collisions. This same ring was previously charged in a similar scheme stemming from vehicles stolen under false pretenses and brought to California Collision in San Bernardino County.

One of the scams in this case involves a tow truck showing up immediately after a collision occurs and offering to help the driver by towing their vehicle to a body shop. Then the body shop forces the driver to pay a large amount of money typically not covered by his or her insurance in order to get the vehicle back.

“This type of scam is preying on drivers at their most vulnerable moments—immediately after an accident— when they should be focused on their safety and next steps, not fighting to get their vehicle back,” said Insurance Commissioner Ricardo Lara. “Our department is committed to protecting Californians from fraud, and this PSA is an important step in ensuring drivers know the warning signs and how to protect themselves.

“If you suspect you’ve been targeted, report it immediately. Together, we can put an end to these predatory practices and hold bad actors accountable.”

There are a few red flags drivers should be aware of to make sure they are not a victim of this type of scam:

• Tow truck shows up within minutes of accident but you may not even have had time to call anyone yet.

• Tow truck driver tells you which body shop your car is going to instead of working with you to identify where you want your vehicle to go.

• Tow truck driver tells you someone will contact you by phone or asks you to sign documents.

• Tow truck driver requests a rideshare for you. The department urges drivers who believe they may be in a situation like this to verify the tow truck with their insurance companies or wait for CHP to verify that the tow truck was dispatched by CHP.

Also, people should not sign any documents until they have talked to their insurance company.

To report suspected fraud, contact the California Department of Insurance at 800-927-4357 or online at insurance.ca.gov.

The Inland Empire Automobile Insurance Task Force began an investigation that led to the arrest of an insurance fraud ring, consisting of civilian members of the California Highway Patrol among others in November 2022.

That’s when investigators discovered that a California Highway Patrol employee was allegedly selling traffic collision report face pages, which contain personal information of people who had been involved in collisions throughout Southern California.

The investigation led to the arrest of more than a dozen people who unlawfully sold personal insurance information to scammers.

Scammers would then contact unsuspecting victims involved in the collisions, pretending to be from their insurance companies and coordinating the towing of vehicles to repair centers that they misrepresented as approved by the insurance company.

Then tow trucks would be dispatched. Tow truck drivers, who were allegedly in on the scheme, would pick up the vehicles in Riverside County and tow them to a Buena Park business.

Once the vehicles were at the business, the owner would hold the vehicle hostage and demand cash payment from the insurance companies to have the vehicles released.

During the numerous search warrants, additional evidence was obtained showing the alleged ring was engaged in other types of insurance fraud schemes, including collusive collisions.

The Riverside County District Attorney’s Office has also charged some of the defendants with tax evasion of $136,408.

The Riverside County District Attorney’s Office is prosecuting the case.

—from a prepared California Department of Insurance release