As insurance companies alert drivers to a rising scam involving tow truck businesses, victims of auto accidents may have additional concerns.
According to Chris Stroisch, vice president of public affairs and communications at the National Insurance Crime Bureau (NICB), there has been a “significant spike in predatory tolling in the United States, which has increased 89% in the last three years.”
“We’re seeing predatory towing occurring in cities both large and small. So you’re seeing predatory towing occurring in large cities like Chicago, Los Angeles, and Washington, D.C. But you’re also seeing it in small communities like Des Moines, Iowa,” Stroisch stated.
These predatory towers, Stroisch added, are “following the money” and will operate wherever they can maximize their profits.
In addition to echoing the NICB’s warning, the California Department of Insurance stated that it has observed a rise in the practice of certain tow truck businesses pursuing people involved in collisions by removing their vehicles and then holding them hostage for hefty sums of money.
“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,” Insurance Commissioner Ricardo Lara stated. “Our department is committed to protecting Californians from fraud, and this PSA is an important step in ensuring drivers know the warning signs and how to protect themselves.”
According to an agency official, they are currently observing two main scams. One entails a tow truck driver volunteering to assist the other motorist by hauling their car to a body shop as soon as possible following a collision.
“Tow drivers show up to accident scenes and misrepresent to the crash victim that they were sent there by the insurance company, when they were in fact not,” according to the agency. “The suspects steal/tow the victim’s vehicle under false pretenses to a body shop or tow yard. They then charge exorbitant fees to the victim or insurance company to release the vehicle.”
A tow driver stealing a victim’s personal information by impersonating police enforcement or an insurance company official is the second scam the agency reported they are witnessing.
“Suspects contact the crash victim claiming to be an employee of the victim’s insurance carrier, indicating they will tow the vehicle to a body shop approved by their insurance company and then steal/tow the vehicle under false pretenses,” the California Department of Insurance spokesperson stated.
Stroisch went on to say that they advise customers to follow two general guidelines.
“First thing, if you didn’t request it, reject it,” Stroisch stated. “If you’re in an accident and a tow truck company shows up on scene that’s unsolicited, we tell people to wait for law enforcement to arrive. And then once that tow truck company is on scene, to know as much as you can or know before you tow.”
In order to prevent falling prey to this kind of fraud, drivers should be aware of the following warning signs, according to the California Department of Insurance:
- If you haven’t had time to phone anyone yet after an accident, a tow truck arrives minutes later.
- Instead of working with you to determine where you want your car to go, a tow truck driver will inform you whose body shop it is going to.
- if a tow truck driver requests that you sign paperwork or says that someone will call you.
- if you are asked to rideshare by a tow truck driver.
The agency stated that it has established three law enforcement task teams in Southern California that look into organized vehicle insurance fraud in response to the expanding scam practice.
The agency clarified that it oversees these task teams and that they are made up of CDI detectives, California Highway Patrol investigators, and investigators from the local district attorney’s offices.
The agency reports that the Inland Empire Automobile Insurance Fraud Task Force has looked into a number of cases, including one that led to 16 people of Southern California being charged and arraigned.
“This task force investigation found the auto fraud ring allegedly conspired together to create fraudulent insurance claims to illegally collect over $216,932,” according to the department. “The investigation discovered the large-scale organized auto insurance fraud ring was engaged in multiple types of schemes including holding vehicles hostage and collusive collisions.”
According to the agency, this same ring was previously implicated in a related fraud involving cars that were stolen in San Bernardino County under false pretenses.
According to Stroisch, some of these operators are even keeping the cars hostage while charging up to ten times the standard tow fee.
“The average cost of a tow is $109, but we’re seeing costs that have skyrocketed, and we’re seeing costs that are 10, 15, 16, and $17,000 that are just filled with absorbent fees and very vague descriptions of what people are actually paying for all while these vehicles are being held hostage,” Stroisch stated.
“If you’re in an accident, get as much information as you can about a tow truck company and wait for law enforcement to arrive first.”
Source: Fox News
