We've all received a call or email offering an extended warranty for a vehicle, appliance, or electronics. The message usually sounds too good to pass up—after all, who wouldn't want the peace of mind that comes with an extended warranty? But be careful. These offers may not be as legitimate as they seem. Extended warranty scams are on the rise, and knowing how to recognize and avoid them is important.

The Red Flags of Extended Warranty Scams

Scammers often use intimidation tactics, claiming that your current warranty is about to expire or that your vehicle or appliance is "at risk" without coverage. They may ask for your personal information, such as credit card numbers, social security numbers, or even bank account details, to "process" the warranty.

Here are a few red flags to watch out for:

  • Urgency: Scammers will make you feel like time is running out, pushing you to make a snap decision. They'll say things like, "Your warranty is about to expire" or "You need to act fast to avoid big repair costs." Genuine businesses don't rush you into buying a warranty on the spot.
  • Vague Details: Scammers often won't specify what product or vehicle they are offering coverage for, only referring to a "vehicle" or "appliance." A legitimate offer will provide precise details about what's covered.
  • Unsolicited Contact: If you didn't ask for the warranty offer or didn't sign up for anything, it's a huge red flag. Most traditional companies don't reach out to you out of the blue.
  • Too Good to Be True Offers: If the offer sounds too good to be true, it probably is. Be cautious if you're offered an extended warranty at a significantly lower price than others in the market.

What to Do if You Receive an Offer

If you receive an unsolicited call, email, or text about an extended warranty, do not engage with the sender. Instead, take these steps:

  1. Hang Up or Delete the Message: Hang up immediately if it's a phone call. If it's an email or text message, delete it.
  2. Do Your Research: If you're genuinely interested in an extended warranty for your vehicle or appliance, contact the manufacturer or a reputable provider directly. Never rely on unsolicited offers.
  3. Check with the Better Business Bureau (BBB): The BBB keeps track of scam reports and can help you identify whether the company offering the warranty has received any complaints.
  4. Report the Scam: If a suspicious party has contacted you, report the scam to your local authorities or the Federal Trade Commission (FTC).

Protect Yourself Moving Forward

Scammers are always coming up with new tricks, but by staying informed and alert, you can avoid falling victim to these types of fraud. Trust your instincts—if something doesn't feel right, it's better to err on the side of caution. Keep your personal information secure, and don't be pressured into making hasty decisions.

Stay safe, and remember—when it comes to these kinds of scams, don't get taken for a ride!