Authorities at the California Department of Insurance (CDI) are alerting Southern California residents about a growing scam involving tow truck operators who exploit motorists involved in accidents.
In a statement released Tuesday, officials detailed how the fraudulent scheme forces unsuspecting drivers to pay excessive fees to reclaim their towed vehicles.
How the Scam Works
According to CDI, scammers operate by arriving at accident scenes uninvited and offering immediate assistance. They then tow the damaged vehicle to a specific body shop, where the driver is later hit with hefty fees that insurance typically won’t cover.
“This scam takes advantage of drivers at one of their most vulnerable moments—immediately following a crash,” Insurance Commissioner Ricardo Lara said. “Instead of focusing on their safety, they find themselves struggling to retrieve their vehicle.”
Fraud Investigation Leads to Charges
As part of an extensive probe by the CDI Inland Empire Automobile Insurance Fraud Task Force, 16 individuals have been charged in connection with an elaborate insurance fraud scheme.
Investigators uncovered an operation where scammers falsified insurance claims, racking up nearly $217,000 in illegal profits. The same group is also accused of stealing vehicles under false pretenses and transporting them to California Collision in San Bernardino as part of the scam.
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Warning Signs for Drivers
Officials urge drivers to be cautious of the following red flags:
- Tow trucks arriving immediately after an accident, even if you didn’t call for one
- Drivers being told which repair shop their car will be taken to
- Tow truck operators requesting a signature or promising that someone will call later
- Tow truck drivers arranging a rideshare service for the victim
How to Protect Yourself
If you’re involved in an accident and suspect fraudulent activity, verify the tow truck company with your insurance provider or wait for the California Highway Patrol (CHP) to confirm the dispatcher. Officials also warn against signing any paperwork before confirming the legitimacy of the towing service.
For more information or to report suspected fraud, contact the California Department of Insurance at 800-927-4357 or visit insurance.ca.gov.
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