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Explore expert insights on how to spot a car warranty scam to drive smarter and stay informed.
Explore expert insights on how to spot a car warranty scam to drive smarter and stay informed.
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A survey conducted by Transaction Network Services in 2022 uncovered alarming auto warranty fraud statistics. Did you know - Americans get 70 billion unwanted calls per annum!!
Vehicle extended warranty scams generate most unwanted consumer messages.
Many top car extended warranty calls are from the best extended warranty companies in America. Not all are scams.
Most top-notch companies have a dedicated customer service center. These professionals won’t pressurize you. They are there to help you and not to siphon personal information from you.
There are many auto warranty scammers. The secret is to know what to look for.
But how will you know that the caller or text message is a scam? Are there any obvious red flags to look out for? Here are some obvious vehicle service contract scams.
Warranty scams normally begin with pre-recorded messages. They instruct you to press a button to speak to a company representative. Always be alert and provide none of your personal information over the phone.
If you suspect someone is scamming you, report the incident to the Federal Communications Commission (FCC).
Auto warranty scam calls are when an individual misrepresents a dealership or service provider. Car warranty fraud is rife. Unscrupulous individuals warn you your factory warranty is about to expire. These calls include pitches explaining ways to renew or extend your auto repair insurance.
Vehicle service center spam calls are convincing and could persuade you to part with personal information. They will ask you to press a button or stay on the line. Once they have your personal details, they use the information to defraud you.
Calls asking for your information are not legal. The FTC (Federal Trade Commission) stipulates that extended warranty companies need written permission before selling consumers anything.
Whether it’s your phone number, name, or email address. Auto warranty fraud scammers steal identity information. Data breaches are an unfortunate part of modern life and an advancement in technology.
Another common method scammers use is through the State Department of Motor Vehicles. We also refer to this as the DMV. DMVs across America sell lists of personal data to 3rd parties. These are usually private investigators and advertising agencies.
Did you know the DMV can hand over phone numbers, addresses and names? But, they cannot sell your Social Security number, photo, or driver’s license.
Auto repair insurance scammers try to pressurize you into making quick decisions. Bully and rush tactics could lead to signing an agreement before you are ready to do so.
Chances are you won’t have time to read through the contract and confirm coverage through an insurance carrier. Doing your homework and finding the best extended auto warranty is advisable. Comparing several extended warranty quotes will give you a clear understanding of what cover to get.
Reputable service providers know that rushing automobile owners is poor business practice. Instead, they encourage motorists to take their time to make informed decisions.
Trained telesales employees can answer all the relevant questions you ask. If the caller is vague and cannot provide you with details about your warranty, you are probably facing a scam.
Auto warranty fraudsters seek one thing - your information. This enables them to steal your identity and gain access to your personal banking accounts. Callers wanting your:
The chances are the caller is trying to scam you. Hang up right away. Report the number to the FCC.
Taking calls from unknown callers is not a safe bet. The FCC stipulates telemarketers need to identify who they are. Scammers disguise their number by using a different number on caller ID. Legitimate calls display their telephone numbers from caller IDs.
Most businesses have legitimate customer service numbers for their clients. Leaving unknown calls well alone is best.
Smart ways exist to reduce and block scam calls. A good way to avoid scammers is adding your number to the National Do Not Call Registry. This is one way to flag scammers, although not altogether foolproof.
In a technologically advanced world, most smartphones have spam-blocking software. One can silence unknown numbers in the settings. Education is key when protecting yourself against unscrupulous scammers. Arm yourself with knowledge.
