The Edmonton Police Service (EPS) has charged the owners of 10 tow truck companies with fraud following an investigation into fraudulent insurance billing.
EPS said that between March and May, 11 owners of 10 tow truck companies in Edmonton were charged with fraud after police learned that the companies had been billing insurance companies for services that were not provided.
Police estimate that, in total between the 10 companies involved, insurance companies have been fraudulently billed more than $120,000, according to a May 21 news release.
“Fraud through direct billing to an insurance company can be especially difficult for the policy holder to notice,” said Det. Bryan Niehaus of EPS’s Investigation Response Team. “It is always best to contact your insurance provider for a complete invoice of services after using a tow truck company.”
Police launched the investigation in July 2024 following reports of local tow truck companies “demanding people to use their services at the scenes of collisions,” and allegedly inflating bills for towing services by charging drivers up to $5,000 for a standard collision tow that would usually cost a few hundred dollars.
EPS has charged the owners of the following businesses with fraud: AMK Towing, Avenue Towing, Discount Towing Ltd., Edmonton Towing Services Ltd., Infinity Towing & Recovery Services Corp., My Big Tow Inc., Same Boss Towing Ltd. (formerly Super Towing Ltd.), TBT Towing Ltd., Unlimited Towing & Recovery Service Ltd., and 2652736 Alberta Inc. Police say they don’t believe that these companies have any connection to one another.
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The business owners have been appearing in court over the month of May. Police say investigations into other tow truck companies in the city that they suspect have been involved in fraud are ongoing.
Predatory Towing
The Alberta Motor Association (AMA) launched a “provincewide awareness campaign” in December 2024 to inform Alberta residents of their rights when having their vehicles towed following a collision.
Reports of predatory towing in Edmonton and Calgary have been growing, AMA said, adding that these practices leave drivers to face steep fees after “unethical” tow truck operators arrive at a collision scene and “create a false sense of urgency to remove the vehicle.”
“Being in a collision or broken down at the roadside is stressful enough; the last thing any Albertan needs is high pressure from an unscrupulous tower,” Jeff Kasbrick, Vice-President of Advocacy and Operations at AMA, said in a statement.
The provincial association says that fraudulent companies discover collision locations by listening to emergency scanners, and after pressuring drivers to use their services, vehicles are taken to “a remote lot or shady repair shop” where they are withheld until drivers pay steep fees.
AMA that vehicle owners have the right to choose who tows their vehicle and the location it is towed to. The association advises customers that, unless notified by police, they are not obligated to immediately remove their vehicle from the road.
Alberta drivers also have the right to access their vehicle to retrieve personal items, ask the towing company whether it gets a kickback from the particular repair shop it intends to take the vehicle to, as well as the right to a quote before a service is provided and an invoice prior to making payment, AMA adds.
“By knowing your rights and choosing trusted providers like AMA, you can avoid unnecessary stress, costs, and uncertainty. Because the road to recovery after a collision shouldn’t have to include fighting for your vehicle,” Kasbrick said.
“AMA and our roadside assistance network is proud to represent 80% of all private-passenger tows in the province, so our members can be confident that we’ll always protect them—just as we have for nearly 100 years.”
