Four people have been arrested in California amid allegations they used a life-sized bear costume in a pricey insurance fraud.

The California Department of Insurance said all four Los Angeles residents – Ruben Tamrazian, 26; Ararat Chirkinian, 39; Vahe Muradkhanyan, 32; and Alfiya Zuckerman, 39 – had been charged with insurance fraud and conspiracy after so-called the fraudulent claims.

It follows an investigation, dubbed “Operation Bear Claw”, that began earlier this year into a scam that cost three insurance companies $US141,839 ($A217,751).

The stage agency said the group had first claimed for damage after alleging a bear climbed into their Rolls-Royce Ghost and caused interior damage. The expensive vehicle was parked in an area of the San Bernardino Mountains known to be home to a large population of black bears at the time.

The group provided fuzzy night-time footage of the alleged incident to their insurance company. Since posted online by the state agency, it shows a furry figure entering the Rolls-Royce, and spending less than a minute climbing around the backseat before crawling out, leaving scratch marks on the leather seats and door.

“Upon further scrutiny of the video, the investigation determined the bear was actually a person in a bear costume,” officials said.

After investigating further, detectives found the same group had also filed to more claims from the same date and place. However, they involved different luxury cars: A 2015 Mercedes G63 AMG and a 2022 Mercedes E350.

They had also provided video of the alleged incidents, which were strikingly similar to the Rolls-Royce claim.

Suspicious investigators then inquired further.

“The department had a biologist from the California Department of Fish and Wildlife review the three alleged bear videos and they also opined it was clearly a human in a bear suit,” it said.

The bear costume – complete with a furry head, paws and metal tools in the shape of claws – was found when detectives executed a search warrant on the suspects’ home.

The costume’s fur was light brown, further triggering suspicions. According to the California Department of Fish and Wildlife, black bears are the only wild bears in the state.

The four suspects were arrested on Wednesday (US time).