Photo credit: www.yahoo.com
California Residents Warned About “Vehicle Hostage” Scam
Officials from the California Department of Insurance are alerting residents in the Southern California region about an alarming trend involving tow truck companies engaging in deceptive practices targeting motorists who have experienced traffic accidents.
In a recent news release, department officials described how this scam operates and emphasized its increasing prevalence in the region.
The scam typically unfolds when a tow truck arrives shortly after an accident, ostensibly to assist the driver by towing their vehicle to a designated body shop. However, the body shop then demands a hefty payment, often exceeding what insurance would cover, to release the vehicle back to its owner.
An extensive investigation conducted by the California Department of Insurance’s Inland Empire Automobile Insurance Fraud Task Force led to the charging of 16 individuals in connection with a conspiracy that falsely generated insurance claims, amassing nearly $217,000 in illicit funds.
Furthermore, the same group was implicated in a scheme in which vehicles were fraudulently obtained and subsequently delivered to California Collision in San Bernardino.
Motorists involved in a traffic accident should be aware of several warning signs that may indicate they are being targeted by this fraudulent activity:
- Tow trucks arriving within moments of the collision, even if the driver has not called for assistance.
- Tow truck operators specifying the body shop to which the vehicle will be taken.
- The tow truck driver requesting a signature or informing the driver that someone will follow up with a call.
- A tow truck driver suggesting the use of ride-sharing services for the victim.
If individuals suspect they are victims of this scam, it is advised that they first confirm the legitimacy of the tow truck company with their insurance provider or wait for the California Highway Patrol to verify the tow truck’s dispatch. It is critical to refrain from signing any documents until the tow company has been validated.
“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,” stated Insurance Commissioner Ricardo Lara. “Our department is committed to protecting Californians from fraud.”
For further details on how to safeguard oneself from such scams or to report suspected fraud, individuals can reach out to the California Department of Insurance at 800-927-4357 or visit their website at insurance.ca.gov.
Source
www.yahoo.com