Auto Warranty Services Scam

auto warranty services scam

Auto Warranty Services Scam: How It Works

It is time to expose the Auto Warranty Services Scam as a result of the many email requests. In this article, we’ll uncover 5 deceiving car extended warranty calls that you should be aware of. Let’s get right into it because it is a lot to talk about.

If you receive a phone call about your car’s extended warranty, meaning paying extra money just so that you can prolong it, you are most likely getting scammed. Don’t get us wrong. While the extended car warranty calls scam has been around for several years, it is only becoming more popular lately.

A typical scenario is that you get a phone call stating that your car warranty is about to expire, but you can easily extend it if you pay a little extra.

extended car warranty

In most cases, you will naturally think that the call is coming from your dealership or a reputed company associated with the dealership. To make it sound more authentic, the caller may have specific information such as the brand, the model number of your car, and the year.

Car Extended Warranty Calls: The Hook Always Varies

Another variation of the auto warranty service scam will even try to sell you a service or a product that will be impossible to obtain but will cost you plenty of dollars. While you are on call, you may hear pre-recorded or automated voices that might ask you to press a certain number on your phone to reach the operator or to be taken off their call list.

Pressing any button will enable the scammers to know that your number is active and working. They will only increase the number of times they call you or even re-sell your number numerous times to other scammers.

Once you give out your credit card information or even mistakenly buy a service or a product from these car warranty scams, you will never hear from them again and suffer significant financial losses.

Such car extended warranty calls are real, and they happen very often!

While you may know about robocalling and have learned to recognize which calls are scams, you realize that you should have ever answered the call in the first place. Maybe you have also realized that you should not answer calls from numbers that you do not recognize. You may also be aware that scammers can spoof the caller ID to disguise themselves.

According to the Federal Trade Commission, there has been a decrease in the number of people falling for this fraud. Since more people are aware of scam calls such as extended car warranty calls, the problem lies in avoiding these annoying phone calls rather than the scam itself.

Is Extending Your Car Warranty Worth It?

It depends on how much of a risk you actually want to take when it comes to extending your auto warranty. Some people don’t mind spending a few thousands of dollars on a warranty backed by a genuine manufacturer.

This thing gives the customer peace of mind that should anything go wrong; it will be fixed without any problem. Like with all types of insurance, money spent on an expensive extended warranty is generally more than they will ever receive out of the plan.

auto warranty services

If you purchase your manufacturer’s extended warranty on your car, will ensure that only trained professional mechanics will work on your vehicle using original parts at a certified and licensed repair shop, should anything go wrong. However, third-party warranty providers do not have business ties with the manufacturing company of your car.

In most instances, third parties do not cover any essential repairs and will leave you stranded when you are in most need of repairs and services.

5 Types Of Auto Warranty Scams That You Should Be Aware Of

1. Robocalling

Robocalling is the most popular type of auto warranty service scam. Consumers receive calls from a robocall that extends service contracts and pretends to be associated with your car manufacturer or dealership. The Federal Communications Commission states that in most instances, the robocaller knows your personal information about your warranty and your car. This may lead you to believe that the call is genuine. Those who purchased this coverage from these scam calls realized that their request for service or refunds was ignored when their car actually needed a repair.

2. Using Extreme Pressure

In some instances, consumers often feel pressured into buying extended coverage from third-party vendors. Since this is done over the phone, the consumer does not get a proper chance to do any research. Telemarketers and salespersons use high-pressure sales tactics to convince the customer. Beware of any telemarketer forcing you to buy a product or service and anyone who threatens you by saying that they will delete your file or use any other kind of coercive language.

3. Pay to Play

Sometimes, when a consumer is pressed by a telemarketer who imposes high pressure, the consumer may take interest and ask to hear more about the plan. Some consumers may even ask for a written copy stating the terms and conditions before making a decision.

The telemarketer will then respond that they will send a copy of the terms and conditions only after the initial down payment is made. In this case, the telemarketer takes all of your personal banking or credit card information. Then he will charge you for the transaction, and you will never hear back from that company or the telemarketer again.

4. Mailbox Threats

Now that most people know about telemarketers and scammers, it is easy to ignore them over the phone, but not when these companies send authentic-looking documents in the mail. Some telemarketers can disguise sales advertisements as DMV or manufacture warnings. You may receive extended warranty letters in the mail that urge you to take action on your expiring auto warranty. This trick will only encourage you to call the given number in order to obtain more details.

5. Spoofing

When there is a 1-800 number calling on your phone, you may guess it is a scam. However, some third party sales group can go the extra mile and spoof their name that flashes on the caller ID and pretends to be someone they are not. They can even do this with emails and pose from an auto manufacturer’s website, but actually, they are only a third party organization.

car warranty scams

Car Warranty Scams: How To Avoid

One tip is to call 1-888-382-1222 and register your phone number with the Do Not Call List. Though this may not make a huge difference, it may cut down the scammers as extended car warranty calls to a certain extent.

You can also choose to silence phone calls from any unknown numbers if your Android phone supports this feature. If you have an iPhone, this setting can be quickly done. Go to your settings and selecting “unknown silence callers” under the “Phone” option. You will still be notified that you received a call. The caller can still send you a voicemail, but at least you will not be disturbed.

If you recognize some of the numbers that the scammers call from, you can also choose to block them and other unknown numbers. This can be done for both Android as well as iPhones. Though the system may be different for each phone, for some phones, you need to select the number in your phone call log list by holding your finger over it and selecting the option of blocking the number. Or for other phones, you can go to settings, click on “call blocking,” and then choose the number you want to block or key in the number manually.

You can also install a particular spam filter on your phone under the caller ID settings, helping to determine spam calls. Your phone caller ID will flash a warning if the phone number is suspected to be a scam.

Here is how to stop scam calls and how to report a scam number.

Avoid Third Parties

It’s better for your peace of mind to purchase an extended auto warranty directly from your car manufacturer and not from any third party. If you decide to buy it from a third party, you can easily log on to the Better Business Bureau’s official site and check their reputation and review other clients. You can report fraudulent activities to the Federal Trade Commission – see the link below.

Ask them for details about your car model when the warranty is expiring and other information. Ask them for any terms and conditions before you make any payments. Do not give your Social Security Number, credit card number, or banking information to anyone over the phone. There are tons of Social Security scams and credit card scams out there that you should avoid.

Don’t feel anxious by these telemarketers or about “missing out” on opportunities or facing deadlines.

An excellent way to have peace of mind is to “self-insure” and gather some money each month. This way, even if your car breaks down and needs repairs, you will have the money to take care of those problems. Another good tip is always to read the fine print before you invest your money in anything.

Auto Warranty Services: How To Report a Scammer

Warn friends and family about the Auto Warranty Services Scam by sharing this article here, on social media. If you also wonder how to report phone scams, you can also officially do it to the Federal Trade Commission using the link below:

Report To The FTC Here

How To Prevent Identity Theft and More

If you want to find out the most notorious scams every week, subscribe to the Scam Detector newsletter. You’ll receive periodic emails – no spam. Meanwhile, educate yourself with some other vehicle fraud-related articles under this paragraph. Last but not least, feel free to use the Comments section below to expose other car warranty scams.

Here are some must-reads:

Car Lease Extended Warranty

Forced Warranty at the Car Dealership Scam

Uber Scams

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selma hrynchuk
Selma HrynchukSelma is a fraud prevention specialist renowned for her expertise in private eye investigations and a remarkable partnership with law enforcement agencies. Beyond her investigative triumphs, her public speaking engagements and written works have empowered countless individuals to protect themselves and stay ahead of deceptive schemes. Selma's legacy shines as a tenacious agent of change, unyielding in her commitment to battling fraud and ensuring a safer world for all.

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