When unfortunate accidents or vehicle breakdowns occur, there is suddenly an uninvited tow truck that swiftly appears on the scene and offers towing services proactively? The California Department of Insurance warns everyone that this is a relatively new scam, and once deceived, victims may face their vehicles being impounded and extorted for large sums of money.
The California Department of Insurance issued a public safety announcement on Tuesday (18th), stating that incidents of scams targeting accident victims using tow trucks are increasing, especially rampant in Southern California. These scammers operate in organized groups, using tactics such as seizing vehicles and orchestrating intentional collisions.
“Scammers strike at the most vulnerable moment of the drivers, which is right after the accident occurs.” Insurance Commissioner Ricardo Lara cautioned drivers to be vigilant against this “Vehicle Hostage” scam.
The scammers’ modus operandi is as follows: when a collision occurs and the driver is still in a state of panic, the scammers will impersonate a legitimate towing company and quickly show up, offering to help tow the vehicle to a repair shop. However, when the driver tries to retrieve their vehicle from the “auto repair shop,” they discover that the vehicle has been impounded, and the shop forces the driver to pay a large sum of money before releasing the vehicle, which is usually not covered by insurance.
Eric Hood, captain of the California Department of Insurance’s Anti-Fraud Unit, pointed out that scammers would directly inform victims that their vehicles would be towed to a specific repair shop, and then act swiftly, leaving the victims no time to verify whether they are from a legitimate towing company with their insurance company.
The Department of Insurance stated that while this scam had occasionally occurred in the past, it had become increasingly common in recent times. The public should be alert to the following warning signs to ensure they do not fall victim to such scams.
1) A tow truck appears at the accident scene even before you have had a chance to call your insurance company or anyone else;
2) The sudden tow truck driver does not inquire where you want your vehicle to be towed but tells you it will be taken to a specific repair shop;
3) The unfamiliar tow truck driver informs you that someone will contact you by phone or request you to sign documents;
4) The tow truck driver offers you a ride.
Encountering the above situations could likely be a carefully designed scam. Hood advised drivers that if they encounter an accident on the highway, they should confirm with the California Highway Patrol (CHP) or their insurance company: “Who will tow the vehicle to the scene? Where will the vehicle be towed?” Never sign any documents you don’t understand.
Lara stated, “If you suspect you have become a target of scammers, please report it immediately. We can work together to stop these predatory behaviors and hold the perpetrators accountable.”
California recently uncovered a 16-person fraudulent group, accused of conspiring to fabricate false insurance claims and using the above scam to fraudulently obtain over $216,932.
The scam ring also unlawfully obtained personal information from thousands of drivers involved in collisions across various locations. The scammers would initiate calls to these drivers, pretending to be employees of their insurance companies, and instruct them to tow their vehicles to a falsely claimed “repair center” approved by their insurance company.