Authorities have dismantled an alleged auto insurance fraud ring in Southern California, leading to the arrests of 16 individuals accused of scamming accident victims by illegally towing and holding vehicles for ransom.
The California Department of Insurance (CDI) is now warning drivers to be cautious of fraudulent tow truck operations that exploit victims in the aftermath of collisions.
The investigation, launched in November 2022, uncovered a network involving a non-sworn California Highway Patrol (CHP) employee who allegedly sold accident reports to a ringleader.
That information was then used to mislead crash victims into having their vehicles towed to body shops that falsely claimed to be insurance-approved. Instead of receiving repairs, victims were reportedly pressured into paying exorbitant fees to reclaim their cars.
Authorities say the Southern California auto insurance fraud ring, operating in Riverside, San Bernardino, and Los Angeles counties, illegally obtained over $216,000. Investigators also linked the group to past insurance fraud cases involving staged accidents and similar vehicle extortion schemes.
In light of these findings, CDI advises drivers to be wary of tow trucks arriving unsolicited at crash scenes, operators steering victims to specific body shops, and any requests to sign paperwork or accept transportation services before verifying legitimacy. If in doubt, drivers should contact their insurance provider or CHP before allowing a tow.
