How to Stop Extended Car Warranty Phone Calls

Recognizing fraudulent car warranty calls

One of the best ways to avoid an extended car warranty scam is to learn the common signs of a fraudulent call. Fraudulent car warranty calls are often used by scammers to mislead consumers. By posing as a representative from a provider, the scammer tries to sell you a new policy or renew your existing one in an attempt to extract your personal and financial information.

Any robocall trying to sell you something — including a car warranty — is illegal unless you’ve given written permission. That means most of these calls are scams, even if the company sounds real or familiar.

Here are some common red flags that indicate you’re talking to a scammer:

• The caller ID appears as an “Unknown number.”
• A prerecorded message tells you to press a button to connect with a representative.
• The caller claims your warranty is expiring and says you need to act now.
• You're asked to provide personal information, like a credit card or Social Security number.
• You're pressured to make a quick decision.
• The caller requests an unusual form of payment, like a gift card, wire transfer or other nontraditional method.
• The caller gives vague answers to questions and can't explain warranty details.

How caller ID spoofing makes scam calls harder to spot

Seth Ruden, global advisory director at BioCatch, advises consumers to be familiar with these signs since “scammers are continually refining their methods and advancing their tactics through technology, frequently emulating legitimate products or services.” One of the more sophisticated tactics used today is caller ID spoofing.

Caller ID spoofing is when scammers disguise their number so that a fake or misleading one appears on your caller ID. They might use a local number, one similar to yours (known as neighbor spoofing) or even impersonate a real company to increase the chances you'll pick up.

Blocking unwanted car warranty calls

After you’ve learned the signs of a scam call, you’ll want to reduce and block as many future calls about car warranties as you can. Fortunately, consumers have a lot of effective tools at their disposal.

Effective methods to block unwanted calls

• Add your number to the National Do Not Call Registry. While it won’t stop scam calls, it can reduce legal telemarketing from legitimate companies, making it easier to spot illegal or suspicious calls.
• Download a third-party app to block and stop unwanted calls. Some of these are free while others require a subscription.
• Use your phone’s built-in call blocking features like AT&T’s ActiveArmor, Verizon’s Call Filter or T-Mobile’s ScamShield. Many cellphones also automatically prefilter suspected scam calls and label them as potential spam on your caller ID.
• If your home phone uses the internet to make calls, consider using an internet-based call blocking service.
• If you have a traditional landline, ask your phone company about call blocking options or install a physical call blocking device.

Using one or more of these strategies can significantly reduce the number of unwanted calls you receive.

Reporting car warranty scams

Reporting suspicious calls helps reduce unwanted extended car warranty robocalls by giving enforcement agencies the information they need to act. The Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) track scam patterns and rely on consumer reports to investigate fraud and issue fines.

Your complaint won’t stop calls overnight, but it helps federal agencies target offenders and prevent future scams. Each report adds to the evidence used to shut down illegal robocall operations and improve call-blocking tools.

How to report a car warranty scam

You can report scam calls to either the FCC or FTC, either online or by phone. Include details like the number that called you and what the caller or recording said. Both agencies accept reports even if you aren’t sure the call was fraudulent.

The FTC also publishes scam phone numbers daily to help phone carriers and call-blocking tools stop future calls. You may also be able to report scams at the state level by contacting your state attorney general or local consumer protection agency.

Understanding the extended car warranty scam

Extended car warranties (also called vehicle service contracts) are a legitimate consumer product, but understanding how scammers misuse them can help you avoid fraud.

A typical scam warranty call features someone posing as a representative from an extended warranty company trying to sell or renew your policy. The call may be prerecorded or live, but it often includes urgent requests for personal information or demands for nontraditional payments like gift cards, wire transfers or cryptocurrency.

Some scammers call random numbers, but others have detailed information about you or your vehicle, which can make them seem more legitimate.

Scammers may get your information from sources like:

• Data breaches
• Identity theft
• Legally obtained personal data from the Department of Motor Vehicles
• Information you’ve entered on websites that disclosed your data could be shared

Another way scammers get data is from websites that collect and share information gathered while you visit, as outlined in the site’s privacy policy.

Differences between legitimate and scam calls

Don’t trust caller ID — hang up and call the number listed in your warranty contract instead.

There are a number of reputable extended warranty companies, and if you’re currently working with one, you may receive legitimate calls regarding your policy. However, it’s illegal for these companies to make unsolicited calls about purchasing a warranty without your permission, and most calls like this will be scams.

If you have a vehicle service contract and receive a suspicious call from someone claiming to represent your provider, you should hang up, find the company’s phone number on your contract and call it back. This is the best way to differentiate between legitimate and scam warranty calls.

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Protecting yourself from scam calls

Consumers should use precautions to avoid all scam calls, not just those for extended car warranties. Follow these steps to keep yourself safe:

• Don’t answer calls from numbers you don’t know. The more scam calls you answer, the more you’ll receive.
• Let unknown numbers go to voicemail. A legitimate company will almost always leave a message.
• Never give personal information over the phone unless you’re 100% sure you know who you’re speaking with.
• Hang up if the call is prerecorded and asks you to dial a number to connect with a representative.
• Use caller ID and call screening to filter calls.
• Hang up and look for the company’s number on its website or your account statement, and call it back if you’re unsure.
• Don’t feel pressured to provide information. That’s usually a sign the call is fraudulent.
• Save your provider’s number in your phone if you have an extended car warranty.

Everyone should be wary of anyone cold-calling and requesting any private information. Ruden reminds us to “treat all unsolicited communications, especially those asking for personal information such as account credentials, login information or two-factor token codes, with skepticism.”