NYC Taxi Drivers In Massive Fraud

The NYC Taxi & Limousine Commission has uncovered a massive scam on the part of the city's taxi drivers, many of whom are are charging out-of-borough rates to unsuspecting riders.

The drivers’ scheme, the commission said, involved 1.8 million rides and cost passengers an average of $4 to $5 extra per trip. The drivers, officials said, flipped switches on their meters that kicked in the higher rates, costing New York City riders a total of $8.3 million. The 1.8 million fares represent a tiny fraction of a total 360 million trips over the 26-month period in question. Agency officials said, however, that they were alarmed enough that they immediately ordered the companies that manufacture the meters to create a system to alert riders when the higher rates are being charged. That is likely to be done through the digital screens facing the back seats of the cabs. The commission said it began an inquiry after investigators, responding to a rider’s complaint, determined that a cab driver from Brooklyn, Wasim Khalid Cheema, had overcharged 574 passengers in just one month last year. Mr. Cheema’s license has been revoked. He could not be reached for comment. The commission then used GPS data, collected in every cab, to review millions of trips in New York City and found a huge number in which the out-of-city rates had improperly been charged, officials said.

Drivers are claiming that the overcharges are accidental due to how close together the meter buttons are. I've noticed that my rides from the UES to the West Village can vary from $13-$19, but I've always chalked that up to traffic. But I'll be watching that the far right number on the meter (above) is always a 1, not a 4, which is the out-of-city rate.