Watch Out for Auto Warranty Scams

Scammers are getting more daring these days. You could be a victim of an auto scam warranty if you have a car and phone. Robocallers will call you and pressure you into getting the best car warranty. They speak with a sense of urgency, stating that your current manufacturer’s warranty is expiring, leaving you to deal with all the costs of repairs on performance issues or mechanical problems. Find out how you can avoid getting scammed out of your hard-earned money.

How Do Auto Warranty Scams Work?

In the ruse, a robot calls you and urges you to renew your expiring auto warranty. You’re asked to press a number that will take you to someone who pretends to work for the auto manufacturer or car dealership. They scare you into believing that you will lose out on a lot of money if you don’t act fast. 

Their hard-selling pitches are believable because they may know your car’s make and model. But bear in mind this information is public records and could be taken from the nearest motor vehicle department. They could have also bought the information from data centers.

Once you’re hooked on their sales pitch, they ask you for personal information and finance data to renew your auto warranty contract. You’ll fall right into their hands if you give them what they want. Apart from getting charged a bogus contract on your credit card, they now have your financial information and could steal your identity.

Red Flags to Spot for Scams

These veteran scammers follow a similar spiel or playbook when they call you. Usually, their knowledge of what they’re selling is only superficial. If you ask them questions, it’s easy to catch them making mistakes. Here are some red flags you should watch out for: 

• Robocall: When it’s a robot on the other line, it’s safe to assume you’re speaking with a scammer. Don’t be afraid to hang up. Instead, call your car dealer or manufacturer directly. 
• Wrong Info: They only have vague information about you, your car, and the specifics of your current policy. Usually, they’ll talk about parts and coverages that are not even related to your vehicle. 
• Pressure: Scammers create a sense of urgency to force you into making a hasty decision. They emphasize you must take immediate action within a limited time. 
• Threats: In a way, scammers make subtle threats, including cancellation of your warranty if you don’t make immediate payments. 
• Information: All scam calls will request your personal information like credit card number, debit card details, or banking information for a withdrawal. If you give these to them, the scammers get a fast payday. 

One common denominator among scammers is they tend to talk fast and act familiar to gain your trust. During the hard sell, they may lure you with a significant discount if you immediately opt to pay for your car protection plan. But if you ask them questions, they could backtrack regarding the specifics of the warranty and the company’s details.

Protect Yourself From Scammers 

When shopping for car insurance policies online, you often input your car’s make and model. Be wary of adding any other personal information that scammers can collect and use against you. Remember that auto manufacturers and dealers do not make sales pitches to consumers. They don’t use high-pressure sales tactics to get your business. 

When your phone rings, check the caller ID. Legitimate companies display their names and phone numbers. Without the correct information, you could be phone-tagged by a con artist. But since scammers are getting savvier, you may spot authentic-looking caller IDs designed to fool you. The only difference is that they use spoof phone numbers, not legitimate ones. If you suspect you’re getting a scam call, hang up immediately. You can call your manufacturer or dealer directly to verify what’s happening. 

If you’re in doubt, check your manual for the accurate manufacturer warranty expiry date. On top of that, car warranty extension policies are also available on the official websites of most car companies. To safeguard your information, never give the following information to an unverified caller: 

• Social security number
• Credit card number
• Debit card number
• Banking details
• Other contact information

In these modern times when everyone’s instinct is to answer the phone as soon as it rings, it’s vital to exercise due diligence and pause for a moment. Verify who is calling you before answering the call. It’s best practice to ignore unknown numbers not saved on your contact list. If robocalls don’t let up, you can use apps that filter spam and block unknown numbers that call you repetitively. In these challenging times, it’s better to play it safe.