A growing scam is targeting drivers across the U.S., using fake tow services to extort thousands after accidents. What should you watch out for—and how can you protect yourself?
Drivers already shaken after an accident are now facing a new threat: predatory towing companies that swoop in, uninvited, to tow vehicles and hold them hostage for outrageous fees. According to the National Insurance Crime Bureau, reports of this scam have spiked by 89% in just three years, hitting both major metro areas and small-town America.
NICB Vice President Chris Stroisch told Fox News that these shady operators are going wherever they can “follow the money.” He warned that some are engaging in reckless behavior like turf wars and even shootings. The problem is no longer isolated—it’s becoming a national crisis.
One version of the scam involves tow trucks appearing moments after a crash, pretending to have been dispatched by insurance companies or police. They then haul off vehicles to unknown repair shops and demand jaw-dropping fees—sometimes up to $17,000. Another version involves fake calls to victims, claiming to be from their insurer, to trick them into surrendering their vehicle.
“This type of scam is preying on drivers at their most vulnerable moments—immediately after an accident,” said California Insurance Commissioner Ricardo Lara. “Our department is committed to protecting Californians from fraud.”
Red Flags You Need to Know
The California Department of Insurance identified several warning signs that a tow service may be running a scam:
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A tow truck appears before you’ve contacted anyone.
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The driver refuses to take your preferences into account for which body shop to use.
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You’re asked to sign documents or are told someone will call you later.
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The driver arranges a rideshare or insists on rushing you away from the scene.
Stroisch emphasized two golden rules: “If you didn’t request it, reject it” and “know before you tow.” Always wait for law enforcement or verify a tow truck through your insurance company.
Task Forces Crack Down
California has launched three task forces to take on this growing criminal enterprise. These include investigators from the Department of Insurance, California Highway Patrol, and local district attorney offices. One task force in the Inland Empire has already charged 16 individuals involved in a fraud ring accused of stealing over $216,000 through fake claims and “vehicle hostage” scams.
While most towing companies are reputable, Stroisch warns that rogue operators are exploiting gaps in regulation. “Every state, every municipality is different,” he said. “Some have licensing and transparency laws—but many do not.”
According to NICB, states should consider banning “accident scene solicitation,” a common tactic used in these scams. Stroisch said his group is tracking 107 bills across 37 states that aim to curb predatory towing.
How to Stay Safe
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Wait for police. Don’t allow a tow truck to take your car unless verified by law enforcement or your insurer.
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Don’t sign anything. Especially if you haven’t spoken to your insurance provider.
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Confirm the shop. Make sure the vehicle is being taken to your chosen body shop, not one selected by the driver.
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Ask for ID. A legitimate tow driver will have identification and company credentials.
And finally, if a deal seems rushed, shady, or suspicious—walk away. Your insurance provider should always be your first call after an accident. With scammers preying on vulnerable victims at crash sites, awareness is your best defense.
