California Department of Insurance Warns Drivers About Vehicle Hostage Scam Sweeping Southland

RIVERSIDE, Calif. — Today the California Department of Insurance issued a PSA with a warning for California drivers about an increase in scams involving tow truck companies targeting car accident victims where vehicles are being held hostage for cash. 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. 

This task force investigation found the auto fraud ring allegedly conspired together to create fraudulent insurance claims to illegally collect over $216,932. 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. This same ring was previously charged in a similar scheme stemming from vehicles stolen under false pretenses and brought to California Collision in San Bernardino County. 

Read the full press release. California Department of Insurance, February 18, 2025 

NICB assisted the investigation.