The California Department of Insurance (CDOI) issued a public service announcement (PSA) on Tuesday, February 18, warning drivers about an increasing scam involving tow truck companies. The scheme, described as a “vehicle hostage” scam, targets car accident victims and is becoming more prevalent in Southern California.
The CDOI’s Inland Empire Automobile Insurance Fraud Task Force has been investigating multiple cases related to this scam. One investigation has already resulted in the arraignment and charges against 16 Southern California residents.
According to the task force, the auto fraud ring allegedly conspired to create fraudulent insurance claims to illegally collect over $216,932. The CDOI is urging drivers to be vigilant and aware of this growing threat.
