NICB says new partnership will help combat fraud in towing, storage, and more
The National Insurance Crime Bureau (NICB) has partnered with Honk Technologies to combat fraud and abusive practices related to vehicle towing, impound, storage, and salvage, according to an NICB press release.
NICB and Honk plan to establish channels to share information and emerging fraud intelligence across NICB’s consortium of fraud-fighting partners as new issues and questionable activity emerge across the towing and vehicle services marketplace. Honk is a technology platform that NICB says connects motorists with a nationwide network of service providers while capturing real-time data across the service lifecycle.
According to the release, Honk’s combination of technology, network scale, and operational visibility gives it a unique perspective into trends and activity across the towing and roadside ecosystem.
“Fraud and questionable practices both on and off the road can create significant costs for consumers and insurers alike,” said Tim Slater, NICB chief operating officer, in the release. “By working closely with Honk and combining information from our respective networks, we can identify concerning activity sooner, provide the key information that helps solve cases and strengthen our protections against fraud and abuse in the vehicle services ecosystem.”
Matt Bijur, Honk president, added: “Because of the volume of towing and roadside activity that moves through our platform, we have a unique view into what’s happening on the ground across the country. Fraudulent and predatory practices hurt motorists and insurers, but they also hurt the reputation and livelihood of honest, hardworking service providers doing things the right way. Our partnership with NICB gives us a way to turn what we’re seeing into actionable intelligence that can help root out bad actors and protect the broader towing and roadside ecosystem.”
NICB says the partnership expands its established approach by fostering cooperation between roadside assistance providers, insurance companies, and law enforcement agencies to identify and address insurance fraud and related criminal activity.
“Partnerships enable NICB to convert information that might otherwise remain isolated into actionable insights that protect insurers, legitimate businesses, and policyholders from the costly burden of fraud,” the release states.
Predatory towing is an issue some lawmakers have sought to tackle, including in California.
Most recently, California’s SB 1112, meant to deter “bandit towing,” was held in committee in August at the passage deadline.
The Assembly’s Judiciary Committee unanimously passed the bill in June. Before a vehicle can be sold by a towing company, impound yard, or storage facility, SB 1112 would have authorized the vehicle’s registered owner, legal owner, lienholder, or insurer to post a bond or other adequate security to release the vehicle.
In June, the state license of Los Angeles-based automotive repair dealer LA Custom Collision was suspended following an investigation by the Bureau of Automotive Repair (BAR).
BAR found that the business engaged in fraudulent, predatory, and deceptive business practices that harmed consumers, according to a BAR press release.
Last year, investigations by the California Department of Insurance (CDI) and law enforcement disbanded a predatory towing ring in Southern California.
At the time, CDI issued a public service announcement warning drivers about increased scams that involved tow truck companies targeting car accident victims.
The scams involved vehicles that were held hostage for cash. The CDI’s Inland Empire Automobile Insurance Fraud Task Force has investigated multiple cases, including one that resulted in charges against 16 Southern California residents.
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