Tow Truck Scammer Alert Issued in California

(header image; pexels, not a scam operator)

The latest scam news from California is worth nothing by insurers too, as this is often potential salvage being held to ransom;

Today the California Department of Insurance issued a PSA with a warning for 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 the arraignment and 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 your insurance in order to get your 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, 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 if they believe they may be in a situation like this to verify the tow truck with your insurance company or wait for CHP to verify the tow truck was dispatched by CHP. Also, do not sign any documents until you have talked to their insurance company. For more information on how to protect yourself or to report suspected fraud, contact the California Department of Insurance at 800-927-4357 or online at insurance.ca.gov.