Car warranty scams target consumers through phone fraud

Car warranty scams have become a frequent issue, appearing prominently on the Federal Communications Commission complaint list in recent years. These fraudulent schemes typically occur via telephone calls and utilize various tactics to deceive consumers.

Common methods include automated recordings that claim a vehicle's warranty is expiring, prompting callers to follow button prompts to make payments. More sophisticated scams involve human callers who use social engineering and high-pressure sales tactics. These scammers may possess accurate vehicle details, such as make, model, and mileage, to build credibility. They often attempt to extract sensitive private information, including social security numbers and banking details, under the guise of selling an extended warranty.