California drivers warned of spike in vehicle hostage scams

Authorities are warning California drivers about a rise in vehicle hostage scams, where scammers demand money to release towed or impounded cars.

Why It Matters

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.

What To Know

The California Department of Insurance has issued a public service announcement warning drivers across the state of a rise in vehicle hostage scams.

According to the department, some tow truck companies are targeting car accident victims by towing their vehicles—often without clear consent—and then demanding excessive fees for their release.

The announcement warned that tow trucks may show up at crash scenes immediately after an accident. Scammers then often offer to tow the vehicle to a body shop, only for the driver to later be forced to pay inflated fees—often not covered by insurance—in order to retrieve their car.

So far, 16 people have been charged in connection with vehicle hostage scams following an investigation by CDI’s Inland Empire Automobile Insurance Fraud Task Force. The alleged scheme involved falsifying insurance claims to illegally collect nearly $217,000.

Officials said the same ring was charged in a similar scheme where vehicles were taken under false pretenses and delivered to California Collision in San Bernardino.

The CDI’s investigation began in November 2022 after it was discovered that a non-sworn California Highway Patrol employee, Rosa Isela Santistevan, was unlawfully selling collision report information. This led to the discovery of an organized fraud ring led by Andre Angelo Reyes, who purchased personal data from Santistevan and used it to scam victims. The scheme involved sending tow trucks to steal vehicles, which were then held hostage at Certified Auto in Buena Park, demanding cash payments for their release.

In addition to the vehicle hostage scam, the ring was found to have engaged in other fraudulent activities, including collusive collisions. The Riverside County District Attorney’s Office has also charged members of the ring, including Reyes and Diana Villa Pineda, with tax evasion.

What People Are Saying

Insurance Commissioner Ricardo Lara said: “This type of scam is preying on drivers at their most vulnerable moments—immediately after an accident—when they should be focused on their safety and next steps, not fighting to get their vehicle back. Our department is committed to protecting Californians from fraud, and this PSA is an important step in ensuring drivers know the warning signs and how to protect themselves. If you suspect you’ve been targeted, report it immediately. Together, we can put an end to these predatory practices and hold bad actors accountable.”

What Happens Next

Drivers are urged to watch out for several warning signs, such as a tow truck arriving minutes after the accident, a driver insisting on a specific body shop, or asking you to sign documents before talking to your insurance company. If you suspect you may be a victim, it’s important to verify the tow with your insurance company or wait for the California Highway Patrol (CHP) to confirm the tow truck’s legitimacy, the California Department of Insurance said.

The Department of Insurance encourages anyone who suspects they’ve been targeted by these scams to report it immediately. To report suspected fraud or learn more about how to protect yourself, drivers can contact the California Department of Insurance at 800-927-4357 or visit insurance.ca.gov.