Car2Go rental car service halts operations in Chicago due to fraud, vehicle thefts

Car rental service Car2Go suspended its operations in Chicago on Wednesday to deal with an issue that allegedly led to over 100 vehicles being stolen.

Initially reported by some outlets as a hack, the Daimler-backed company clarified that it was a “fraud" issue and that it is working with Chicago police.

(Robin Marchant/Getty Images for car2go)

According to CBS 2 Chicago, several of the cars were used in crimes and at least a dozen people were taken into custody as the vehicles were recovered.

“Due to the information provided by the company, numerous vehicles have been recovered and persons of interest are being questioned. The Chicago Police Department is working with the company to determine whether there any other vehicles whose locations cannot be accounted for,” read a statement issued to CBS 2.

(Robin Marchant/Getty Images for car2go)

Car2Go, which is part of the Share Now network, allows members to rent vehicles locally by the hour from a pool of hundreds of cars scattered around the city, picking them up from and leaving them in curbside spots. The company exclusively uses Smart and Mercedes-Benz models, with the latter reportedly being the ones that were involved in the fraudulent rentals. The service signed up over 10,000 in Chicago since launching last summer.

Car2Go tweeted that “none of our member’s personal or confidential information has been compromised. No other SHARE NOW North American market has been affected.”