Drivers are being warned of spike in ‘vehicle hostage’ scams. The red flags you should know
The alleged scammers were charged in another scheme in which vehicles were towed under false pretenses
The California Department of Insurance has issued a warning about a tow truck "vehicle hostage" scam targeting drivers in Southern California, providing a list of red flags motorists should watch for in the event of an accident.
On Tuesday, the agency issued a news release detailing the scam — in which cars are being held hostage in exchange for cash — and advising motorists of what they should do if they're targeted.
“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,” the release said. “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.”
The CID's Inland Empire Automobile Insurance Fraud Task Force has been investigating the scam after charging 16 people in an alleged conspiracy to fabricate insurance claims. The false claims reportedly collected a total of nearly $217,000, according to KTLA.
"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," the agency said.
The same ring of alleged scammers were charged in a similar scheme in which vehicles were towed under false pretenses and taken to California Collision in San Bernardino.
The CDI says drivers should be aware of the following warning signs if they are involved in a collision:
If a tow truck arrives moments after an accident, especially if no one involved has called one, drivers should be wary. They should also be wary if the tow truck driver knows exactly which body shop they're taking the car to without having to look it up, or if they tell the driver that someone will call them and needs them to sign documents. If the tow truck driver requests a ride share for the accident victim, it may also be a sign of a scammer.
If any driver finds themselves potentially being targeted by this scam, they are advised to call the California Highway Patrol to confirm that they sent a tow truck to the scene of the accident, or if they have requested a tow from their insurance company to confirm the company with their insurance providers. Drivers should not sign any documents until they have confirmed that the tow truck company was sent by the CHP.
“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,” Insurance Commissioner Ricardo Lara said. “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.”