Fact: How Does the Warranty Scam Work?

Scams come in different shapes and sizes, and the warranty scam is no different. With various shams in the world today, consumer experiences vary from one incident to the next. Don’t fret, though. You do not need to miss out on getting a warranty for your car just to avoid getting scammed. 

One way to keep yourself safe from getting conned is by trusting reputable car warranty companies. Resources like the Better Business Bureau website and customer reviews can provide reliable information on a warranty provider’s legitimacy and overall trustworthiness. 

You can also protect yourself by learning all you can about the different kinds of car warranty scams. Then, hopefully, you’ll be able to sense when something is wrong with the coverage you’re being offered. Below is some useful information on how these scams work. 

Over the Phone

When people actively seek out warranty companies and their products, it’s one thing. However, when a person gets a cold call out of nowhere with a caller using fear tactics to get them to buy a guarantee, that’s a completely different ballgame. Sometimes, these calls are nothing more than robocalls spreading those dreaded “Hello, we’ve been trying to reach you about your extended car warranty” messages. However, it’s always a good idea to err on the side of caution.

In many cases, scammers successfully trick car owners because they know information about the car. For instance, the caller might know your car’s make and model. Don’t be fooled because this information is public and can be gathered from state motor vehicle records. People who remain on the line are usually pressured to say yes at some point. Then, scammers record those communications and use them as confirmations to show that consumers want to buy services from them. 

Of course, you also don’t want to give out any personal information like a credit card number or your social security number over the phone. Scam artists will regularly sell the data they collect. Once that happens, there’s no telling who could get their hands on your confidential data.

Luckily, car owners have many tools to keep unwanted scam calls at bay. For example, thanks to the caller ID feature on most cell phones today, people can see who is calling them. If an unknown number comes across the screen, it’s in your best interest to ignore the call.

Meanwhile, many cell phone carriers have the means to block robocalls or tell their clients that the calls are spam risks. So, if you’re worried about car warranty or other scams, reach out to your phone company and ask what solutions they have available.

Through the Mail

Car warranty scammers also try to get to consumers via the USPS. They send “Final Notices” telling vehicle owners their warranties are expiring, and they need to renew them. Some schemes even go as far as mailing out documents claiming they’re from official government agencies.

These documents may say that the recipients owe expensive amounts for repairs done to cars. The machines in question are usually leased with a few miles on the odometer. That leaves people scratching their heads and wondering how they could owe money for repairs. When curiosity gets the best of individuals, they contact the phone numbers displayed on the pages, where representatives pounce on their fear and sell them products. 

The FCC or Federal Communications Commission has many tips to help consumers avoid scams. You can visit the FCC website to learn about these tips. Here are some of the top suggestions you should know about include:

  • If you’re being pressured for info right away, practice caution
  • Never give out account numbers, passwords, and other confidential information
  • Avoid responding to yes or no questions
  • Hang up when recordings say to push a button to make calls stop

Aside from giving out information over the phone, you also shouldn’t send confidential data like your social security numbers and your mother’s maiden name by mail. 

And don’t forget about email scams. People regularly receive spam correspondences in their inboxes. These email messages entice people to visit websites to input data into fields. Some of the messages even go as far as to try and get individuals to send money through smart phone apps or money orders. Stay away from these emails to ensure you don’t get involved with a scammer.

Avoiding Getting Scammed: Finding a Reputable Company

One way to avoid getting scammed is to buy a warranty policy from a reputable provider. It’s good to do some research before deciding which provider is a good match. The company you choose must be trustworthy and respectable. It can be challenging to determine which providers are reliable these days. Anyone can put up a professional-looking website or have fake reviews published online. 

This is why it’s important to find out everything you can about the companies you’re considering. Aside from visiting the BBB website and reading customer reviews, you can also ask your family members and friends if they’ve encountered these companies. In most cases, you can trust these people’s judgment. 

Some Final Thoughts

Now that you know about these common car warranty scams, you’re better able to protect yourself against them. Of course, these schemes barely scratch the surface, though, and there are many others out there. Therefore, never let your guard down. Instead, stay vigilant and avoid giving out your confidential information. 


Please enter your comment!
Please enter your name here

Related Articles

Best Telemedicine Software: for your healthcare practice

Telemedicine software has transformed my healthcare visits. It's fantastic for patients and doctors since they can obtain aid quickly. I...
Read more
I love microlearning Platforms in today's fast-paced world. Short, focused teachings that engage me are key. Microlearning platforms are great...
Think of a notebook on your computer or tablet that can be changed to fit whatever you want to write...
As of late, Homeschool Apps has gained a lot of popularity, which means that an increasing number of...
From what I've seen, HelpDesk software is essential for modern businesses to run easily. It's especially useful for improving customer...
For all of our important pictures, stories, and drawings, Google Drive is like a big toy box. But sometimes the...