Don’t Get Caught In the Auto Warranty Scam
Another phone call, another scam. It’s not just you; those robocalls won’t stop! Make sure you don’t get caught in the auto warranty scam. More than just an annoyance, scam calls cost 56 million Americans a financial loss in 2020. One of the most common scams over the phone is the auto warranty scam. Here’s all you need to know about it:
How the scam plays out
In this ruse, scammers posing as representatives of a car dealership or manufacturer call to tell you that your auto warranty is about to expire. The scammer then goes into a pitch for renewing your warranty. During the call, you may be prompted to press a number to stay on the line, and then you’re asked to provide personal information to continue the process of renewing your warranty. If you follow instructions, you’ll be playing right into a scam.
How to spot a scam
Look out for these red flags:
- Hello, it’s Mr. Robot calling. When it’s a robocall on the line, you’re almost certainly talking to a scammer.
- Feel the pressure? Scammers notoriously lead victims to act first and think later by claiming their offer is available for a limited time only.
- Just a small fee … Is the caller demanding a small processing fee before supplying you with real details and information on the plan? If yes, you’re being scammed.
- Protect yourself
Some things in life are not meant to be shared, especially your private information. Never share your Social Security number, credit card information, or checking account details with an unverified caller.
It’s instinct to grab the phone when it rings, but hold off just a moment. First, check the Caller ID. Legitimate telemarketers must display their phone number and the name/or phone number of the company they represent. If this information is missing, you’re being phone-tagged by a scammer.
Don’t let an authentic-looking Caller ID fool you, though. Scammers often spoof numbers to make it appear as if they are calling from a legitimate company. If you suspect spoofing, ignore the call. Look up the correct number and then call the company that allegedly reached out to you to ask about the call.
If those robocalls are not letting up, you can always block the number on your phone. Make sure you are also on the Do Not Call list, and report the calls to the FTC. Robocalls are illegal! If you enjoyed this post, check out our other posts on our MoneySmart Tips Blog.
