California authorities have raised awareness of a disturbing trend aimed at drivers who are involved in accidents: the vehicle hostage scam. Unscrupulous people tow automobiles without the proper permission and demand exorbitant charges for their release.
Southern California is experiencing an increasing number of vehicle hostage scams.
Southern California is experiencing a particularly severe case of this problem. Inland Empire Automobile Insurance Fraud Task Force of Department of Insurance is actively investigating a number of cases. The Inland Empire Automobile Insurance Fraud Task Force’s efforts led to 16 Southern Californians being arraigned and charged, showing the organized and serious nature of these fraud schemes. Investigations by the task force revealed an auto fraud ring who colluded in filing fraudulent insurance claims and illegally amassed over $216.932.
California Department of Insurance Issues a Warning
California Department of Insurance has issued a public service announcement Alert drivers in the entire state to the increase of these misleading practices.
Department warns some tow trucks companies specifically target car accident victims. The companies tow cars without the owner’s consent, then demand excessive fees when they return them. They hold vehicles hostage while waiting for payment.
In its announcement, the CDI emphasizes how tow trucks can appear on accident sites surprisingly quickly. Scammers may offer to tow a vehicle to an auto body shop. The driver is then faced with inflated charges, not usually covered by his insurance policy.
Inland Empire Automobile Insurance Fraud Task Force investigation so far has resulted 16 charges being filed against individuals involved in these car-hostage scams. This alleged scam involved creating false insurance claims in order to obtain illegally approximately $217,000.
The same fraud was reported by officials ring was also charged in a related scheme Vehicles were delivered under false pretenses to California Collision located in San Bernardino.
In November 2022, the CDI began its investigation after discovering that Rosa Isela Santistevan was selling illegally collision reports. Andre Angelo Reyes is alleged to be the leader of a fraud organization. Reyes is charged with purchasing Santistevan’s personal data and then using them to commit fraud against victims. This scheme consisted of dispatching tow truck to essentially steal the cars. They were held at Certified Auto Buena, in exchange for cash.
The investigation also revealed other frauds, like orchestrating collusive accidents. Riverside County District Attorney’s Office filed criminal charges for tax evasion against Reyes and Diana Villa Pineda.
Official statements on the vehicle towing scam
Insurance Commissioner Ricardo Lara stated: “This type of scam preys on drivers when they are most vulnerable – immediately following an accident. They should focus on a safe navigation of the aftermath and not fight to retrieve their car. We are committed to protecting Californians and the PSA helps us to do that. Report it right away if you think you have been targeted. We can end these predatory acts by working together and holding those who are responsible to account.”
Tow Truck scams: How to protect yourself
The drivers are advised to remain vigilant and look out for red flags. The red flags include the tow truck showing up almost instantly after the accident or the driver insisting that the car be towed to a certain body shop. Another is being pressured into signing documents without consulting their insurance provider. You should verify that the tow was legitimate by contacting your insurer or waiting for California Highway Patrol to do so. Tow trucks are not the only ones who need to be aware of their rights.
If you believe that your identity has been compromised, please report this immediately. California Department of Insurance can be contacted at 1-800-927-4357 to report fraud, or for more information on how you can protect yourself against these scams. To avoid being victimized by predatory towing tactics, it is important that you are aware of the practices and be proactive.