California drivers warned about predatory towing scam sweeping across state

The California Department of Insurance is warning drivers across the state about a new scam targeting people who were just in a car crash. 

They say that tow truck companies are targeting drivers involved in collisions, picking up their cars and then holding them hostage for large amounts of money. 

"The scam has become prevalent in Southern California and the Department's Inland Empire Automobile Insurance Fraud Task Force, has investigated multiple cases including one that has resulted in the arraignment and charges against 16 Southern California residents," the department's statement said. 

They say the the auto fraud ring "allegedly conspired together to create fraudulent insurance claims to illegally collect over $216,932."

While looking into the matter, they found that there were multiple schemes underway from the fraud ring, which included collusive collisions and holding cars hostages. Investigators found that the same ring was previously charged for a similar scheme that stemmed from cars being stolen under false pretenses and brought to California Collision in San Bernardino. 

"One of the scams in this case involves a tow truck showing up immediately after a collision occurs and offering to help the driver by towing their vehicle to a body shop," the statement said. "Then the body shop forces the driver to pay a large amount of money typically not covered by your insurance in order to get your vehicle back."

To ensure that drivers do not fall victim to this type of fraud, insurance officials offered a series of tips, including: 

• if a tow truck shows up minutes after a crash, especially if its before anyone had time to call them,
• if a tow truck driver says which body shop the car is going to instead of working to agree on a location,
• if a tow truck driver says someone will contact you by phone or if they ask you to sign documents,
• and if a tow truck driver requests a rideshare for you.

Drivers are urged to verify the truck with their insurance company or wait for authorities to verify that the tow truck was contacted by them. 

Investigators call the scheme "bandit tow trucks," and while it's not a new thing, the scam has begun to evolve. 

Natalie Hatcher and her son Sabree Edwards say that they're recent victims of the crime ring. 

"We are almost at $10,000 to release cars that never had any work done on them or anything like that," she said. 

Recently both of their cars were smashed by a drunk driver while parked outside of their homes earlier this month. Minutes after she called 911, a tow truck driver showed up. 

"My car had the most damage, smashed from the front and the back, he pulled it out with a chain and put it up on a wrecker in a flat bed and then he attached my son's car," she said. 

The driver then immediately took off, but they were able to call him back to the scene. It was then that Edwards jumped into the cab to ride to the body shop. 

"I was expecting to go to a shop maybe five, ten minutes away rom my home where the accident happened," Edwards recalled. "Twenty-five minutes in I felt like I needed to check my address and check where I was." 

He ended up at a collision shop in Van Nuys where he was told both cars were totaled before they were even inspected. They finally released his car to him, but only after charging almost $5,000. 

"They did nothing to it," he said. 

Officials say this is unfortunately the latest in predatory towing. 

"In reality, these, you know, suspects, they haven't been dispatched there," said Captain Eric Hood with the Department of Insurance. "They don't work for these insurance companies, and again, they're just hoping to hold the vehicle hostage and get paid out usually upwards."