The California Department of Insurance published a press release warning consumers of an ongoing auto fraud ring in Southern California.
The Department’s Inland Empire Automobile Insurance Fraud Task Force has already arraigned and charged 16 California residents who have allegedly collected $216,932 in fraudulent insurance claims.
The fraud ring engages in multiple methods of fraud, including holding vehicles hostage and collusive collisions. One method involves a tow truck showing up to the scene of an accident immediately after it occurs and towing the vehicle to a body shop in on the scheme. The body shop then charges the driver a large amount to get their vehicle returned.
The Department offers these red flags to look out for to avoid being a victim of the scam: if a tow truck shows up within minutes of an accident; if the tow truck driver chooses which body shop the car is going to instead of giving the driver the option; if the tow truck driver asks the driver to sign documents; and if the tow truck driver requests a rideshare for the driver.
If drivers notice any red flags and suspect they are being targeted, they can verify the tow truck with their insurance company or ask the California Highway Patrol if the tow truck was dispatched by them. The Department’s Fraud Reporting Portal can be found here.
The press release can be found here.