After countless hundreds of rides over the years, a few days ago, I had my first phony meter (in Santiago). It was an interesting encounter. From where I was sitting, I couldn't see the meter run. When I got to the hotel, the fare was over $4.000. As my eyes were bugging out (it should have been $1.500 to $2.000) I told him (en espaņol) that he had a false meter, that the fare should be no more than 1/2 of the meter, and interestingly, he knew he'd been found out. He didn't even argue - he just asked how much I thought the fare should be. I told him "no mas que 2 lucas." ($2.000). I gave him 2 lucas, and left. No argument. (I should have given him nothing).

Stand your ground! This isn't too likely to occur often in Chile, but what I found most interesting is that he probably didn't want to be reported to the authorities and immediately caved and took what I gave him.