Management of Daimler North America subsidiary Car2Go decided to stop conducting manual background checks on all of its users in April to attract new users. Instead, it attracted a ring of thieves in Chicago.
Dozens of vehicles were stolen from the company’s Chicago location on April 15, according to Bloomberg Businessweek, and the thieves claimed the vehicles as their own when workers went to a West Chicago neighborhood to retrieve them.
“This was a unicorn incident for us as a company,” Car2Go spokeswoman Kendall Kelton told Bloomberg Businessweek. “We’ve never seen this type of fraudulent activity and this scale ever, ever.”
Two days after the thefts, the Chicago Police Department said it was notified by Car2Go that some of the company’s vehicles may have been rented by deceptive of fraudulent means through the brand’s mobile app. Additionally, a Daimler spokesman wrote in an email that the company is working with Chicago law enforcement “to neutralize a fraud issue.”