Car2go suspends all service in Chicago due to ‘fraud issue’

Car2Go car-sharing in Chicago on pause following fraud problem

To address the matter, Car2Go froze its Chicago operations today, saying it is "neutralizing a fraud issue and working together with law enforcement".

Several vehicles have been recovered, and over a dozen persons of interest are being questioned, police said.

A total of 100 cars were unaccounted for, 50 of which were Mercedes-Benz vehicles, officials with the Chicago Police Department said in a statement.

No personal or confidential user info is said to have been compromised. "Out of an abundance of caution and safety for our members and Chicago fleet support teams we are temporarily pausing our Chicago service".

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In response to reports that the app had been hacked, the company wrote, "The app was not hacked". Check back for more updates.

CBS reporter Brad Edwards tweeted Wednesday that as many as 100 Mercedes and other high-end cars are missing or have been stolen, and some of these vehicles have been "used in crimes". "The investigation is ongoing".

Share Now is the world's largest car-sharing company, providing a variety of vehicles - from tiny Smart cars, which seat two, to luxury vehicles from Mercedes-Benz and BMW. At the time, Chicago was its newest location and had more than 10,000 members sign on since the Windy City launch in July. The companies also revealed plans for a partnership that, in addition to car-sharing, will involve ride-hailing, electric-vehicle charging, and other mobility technologies and services. A Smart auto costs 24 cents per minute, while Mercedes-Benz CLA and GLA vehicles cost 29 cents per minute.

So far, 21 people have been charged with misdemeanor criminal trespass to vehicle, and one of those individuals faces an additional felony charge for financial identity theft.

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