Posted on Monday, March 10, 2025

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by AMAC, D.J. Wilson

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People who are involved in car accidents may experience some trauma, whether it be physical, emotional, mental, or financial, or a combination of effects. Scammers know this and seek to take advantage of people who are involved in automobile collisions. Learn simple ways to protect yourself from towing scams, a growing form of fraud in the U.S.

Understanding and preventing towing fraud

Towing fraud is a deceptive practice that exploits motorists. In this fraud, one of the following may occur:

• Unauthorized towing: Here, scammers target vehicles parked in private lots, claiming that the automobile was illegally parked. However, the car was not parked improperly. The driver is then forced to pay exorbitant fees to retrieve their vehicle from an impound lot. Sometimes, these scammers may hold cars hostage until the driver pays the inflated fees.
• Predatory towing: In this scam, scammers patrol high-traffic areas for accidents. Or they listen to police radios and show up at accidents, offering to tow damaged vehicles. These scammers show up without being called. Unscrupulous towing service operators may misrepresent who they are or take advantage of people who are traumatized. Once the vehicle is towed, frequently for far distances, these scammers will then charge excessively high fees for drivers to retrieve their vehicles.
• Fake breakdown assistance: In this common scam, dishonest towing services monitor roadsides and highway areas for disabled vehicles and stranded motorists. They pose as legitimate towing companies and offer to tow the vehicle to a nearby repair shop who is an accomplice to the scam. Once the vehicle is in their possession, they inflate the towing and repair costs, leaving the driver forced to pay ridiculously high fees.

Good to know

Towing scams are unethical and can be promptly reported to your local consumer protection agency, the Better Business Bureau, and your state’s attorney general’s office. Note that there are state laws in place to safeguard people in cases where vehicles are towed while the owner is away.  By reporting scams, you can help yourself and stop others from being scammed.

When to report scams to the police

Scams involving the loss of funds or identity should be promptly reported to the police. This enables them to document and investigate the matter. If scammers harass you or threaten harm, or you are in danger, immediately call 911. Depending upon the severity of the threat and jurisdiction, police may press charges against the scammer if credible evidence exists that a crime is committed.

Here are some valuable tips to guard against towing scams

• Only use towing companies recommended by your insurance company, a trusted mechanic, a police officer, or your roadside assistance provider. Avoid unsolicited services.
• If you are in an accident and need a tow truck, police advise you to call 911 or speak to a police officer on the scene.
• Don’t allow any towing company to take your vehicle without your permission. If you are uncertain, wait until the police arrive to help you sort it out.
• Do not make decisions alone while under duress.
• Be very careful about who you allow to tow your vehicle. Understand that once you provide permission to have your car towed by a towing company, you are entering into an agreement with them.
• Verify credentials. Ask for identification providing the towing company’s information. Read towing documents carefully. Take steps to understand the price and terms of agreement.
• Never sign blank invoices. Always get copies of signed paperwork and receipts.
• Whenever possible, pay by credit card and not in cash. This can offer protection in cases of disputes or complaints.
• If you are being pressured, do not do business with that towing company. Report any illegitimate tow companies to the police.
• Take photos of the vehicle before it’s towed, including location and visible damage. For extra protection, take photos of the towing vehicle, license plate, and driver.

Coming to the rescue

Tow truck drivers provide valuable services, and many are honest and hardworking. Unfortunately, towing scams give them and the industry a bad rap. Towing scams are an increasing concern for motorists. Nonetheless, with awareness and vigilance, drivers can protect themselves from fraudulent practices. By understanding common tactics used by scammers, and by taking proactive steps to avoid being taken advantage of, drivers can reduce risks of falling prey to scams.

Do your part to keep others safe  

Being scammed can rob victims of their identity, funds, and even their dignity. Therefore, scammers must be stopped! As always, folks who have been scammed should report fraud promptly to help combat this pervasive issue.

Report towing scams to the National Insurance Crime Bureau (NICB) at (800) 835-6422 or file a complaint with your local law enforcement agency, your state attorney general’s office, or with the Better Business Bureau.

Disclosure: This article is purely informational and is not intended as a substitute for professional advice.