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Investigation found owner charging for services not performed and installing used parts as new. He deceived customers and inflated the price of vehicle repairs.
An undercover operation uncovered an insurance fraud scheme at an auto repair shop in the US state of California. The owner of the establishment was accused of deceiving customers and inflating the cost of simple repairs.
The discovery came after an undercover officer took a vehicle in for repairs and was charged an undue amount.
The owner was reported by the Santa Clara County District Attorney's Office, accused of fraud of seguro. The scheme consisted of exaggerating the damage to vehicles to justify higher charges to customers and insurance companies.
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How the scam worked at the mechanic's shop
The undercover cop, a member of the Organized Automobile Insurance Anti-Fraud Task Force, took a Toyota to the garage.
The goal was to assess whether the owner mechanic would artificially inflate the repair price.
According to the investigation, the mechanic encouraged the officer to report damages in excess of US$ 3.000 to get a larger insurance refund.
The mechanic submitted an inflated quote to Mercury Insurance, claiming nonexistent damage to the vehicle. With the fraud proven, he was indicted and could face a severe sentence.
Common scams in auto repair shops
This is not an isolated case. Fraud in auto repair shops is common and causes billions in losses every year. The most common scams include:
- False reports: workshops exaggerate reported damages to increase insurance bills.
- Staged accidents: involve collusion between drivers and mechanics to defraud insurance companies.
- Vehicle hostages: tow trucks take damaged cars to garages that charge exorbitant prices to free them.
- Unnecessary replacement of parts: mechanics replace known-good components to justify higher costs.
The National Highway Traffic Safety Administration estimates that fraud of this type costs consumers billions of dollars each year in the United States. More than 450.000 vehicles with false information are sold annually.
Authorities alert
District Attorney Jess Rosen warned of the risks of such practices and said investigations will continue to take place to protect consumers.
"For those garage owners who prefer illegal profits to honest work, know this: an undercover cop could be your next client.“, Rosen said. “Fraud is not worth your freedom. It drives up insurance premiums and hurts all drivers."
In February, the California Department of Insurance issued a statement on vehicle hostage takings.
Tow truck companies involved in these schemes would approach drivers who had been involved in an accident and convince them to take their cars to dishonest repair shops. They would then charge exorbitant fees to return the vehicles.
Drivers who suspect fraud should report it to the California Highway Patrol and verify the reputability of repair shops and towing companies before turning in their cars.
How to avoid scams in auto repair shops
To avoid falling victim to garage fraud, experts from Motorautocar and AARP recommend taking some precautions:
1. Ask to see the replaced parts
Before accepting the bill, ask for the old parts that were replaced. If the shop refuses to show them, it could be a sign of a scam.
2. Confirm the repairs carried out
Ask the mechanic to show you what was done. Look for signs of replacement, such as tool marks and new parts installed.
3. Check online reviews
Before choosing a repair shop, check other customers' reviews on Google and Facebook. Frequent negative reviews can indicate problems.
4. Get multiple opinions
For expensive repairs, consult at least two or three different repair shops. If they all report the same problem, that's a good sign that service is needed.
5. Test the workshop with small services
Before entrusting a major repair to a new workshop, do a test run with simple maintenance and compare the diagnoses.
6. Bring a specialist
If possible, call someone who understands mechanics to review the service or check the invoice before paying.
7. Record everything in writing
Request a detailed quote before the service and keep all receipts. This can be useful in case legal action is necessary.
Fraud in auto repair shops is a significant problem for consumers and insurance companies. The case of this California mechanic highlights how these practices can be identified and combated.
Simple measures, such as asking for proof of purchase and checking online reviews, can help drivers avoid unnecessary losses.
It is not restricted to the USA, here in Brazil there is a lot of dishonesty in this field, we really need to be careful
Have at least 03 quotes, ask for the invoice, ask for the old parts and check the new parts that were replaced. I've been through this before, dishonest mechanics charged me what I had already replaced on the car, causing me losses 7 years ago. I experienced a very unpleasant situation, be careful, don't do the service at the first workshop!
The only way to avoid these practices
It is by putting these scoundrels in **** without bail, one year of **** for every hundred reais stolen, **** is the one who will determine his own sentence
I thought it was here, if you put an investigation like that here few would escape, I think