Have you been getting those calls that say, “We’ve been trying to reach you about your car’s warranty”? This article shows you ways to protect yourself from this scam.

There are lots of phone scams out there, and this is probably one of the most irritating. Scammers seem to call non-stop – you may even get multiple calls in a day. It’s annoying but also potentially dangerous. Let’s look at how auto warranty scams work, red flags to watch out for, and ways to stay safe.

How an Auto Warranty Scam Works

In a typical auto warranty scam, you’ll get a phone call – which will probably start with a prerecorded message – claiming to be from a manufacturer, dealership, or insurer. They want you to think they represent a legitimate business – but they don’t.

When you accept a phone call, you’ll likely hear a recorded message saying something about your vehicle’s manufacturer’s warranty. Don’t fall for it.

If you stay on the line, you may be connected to a representative, who might mention details about your car, such as its make and model or the terms of its warranty. This might make the sales pitch sound convincing, but it’s information they could have obtained through public records.

Scammers will try to get you to sign up for a vehicle service contract, which they may call an “extended warranty,” to maintain coverage for your vehicle and avoid paying for repairs out of pocket.

The service contract that they’ll try to sell you might cost between $1,000 and $3,000. The coverage offered is usually incomplete or downright phony and won’t be honored at any repair shop.

If you purchase the warranty and call to complain, you’ll find the fraudulent company is out of business or refuses to cancel the contract.

Watch Out for These Red Flags

• It’s a Robocall
  When you pick up the phone, you’ll likely hear a recorded message saying something about your vehicle’s manufacturer’s warranty. Don’t fall for it.

• You’re Pressured to “Act Now!”
  The caller may use terms like “final warranty notice” or “notice of interruption” to make the offer sound urgent and to get you to act. They may also claim that you can take advantage of a special rate if you sign up immediately. A legitimate company will give you time to make a decision.

• They Use Threatening Language
  The caller may also say that they will cancel your existing warranty if you don’t pay up. Scammers often use threats to intimidate targets into handing over their money.

How You Can Protect Yourself

Now that you know what to look for, how can you protect yourself from an auto warranty scam?

• Don’t answer calls from unknown numbers – let them go to voicemail.
• If you do answer the call and it’s a scammy recording, just hang up. If you’re instructed to press a number to continue the call or be “removed from their list,” don’t. That just lets the scammers know that your phone number is valid, so they’ll keep calling.
• Don’t call back a number that’s provided to you – look up the contact info for your manufacturer, insurer, or dealership yourself.
• Don’t share personal information unless you know for certain that you’re dealing with a legitimate business.
• Don’t always trust caller ID – scammers can use caller ID spoofing technology, so it looks like the call is coming from a local number or a real company.
• Don’t agree to any contract without reading the terms and conditions, including the fine print.
• Do your research – look up the company’s name plus terms like “scam,” “review,” and “complaints.”
• If you’ve received a call you suspect is a scam, block the number.

What to Do if You’ve Been Targeted

If you’ve been the victim of an auto warranty scam:

• Call your financial institution immediately if you’ve provided money or account info.
• If your number is already on the National Do Not Call Registry, report illegal robocalls at gov.
• File a complaint with the Federal Trade Commission at ReportFraud.FTC.gov.

Know the signs of an auto warranty scam and remember these tips so you can tell scammers to hit the road. To learn more about protecting your information, talk to your financial institution today.