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Extended Warranty Robocalls: Scam or Legit? How to Tell

Nov 24, 2025 | Educational

Extended Warranty Robocall Scam or Legit? 10 Red Flags to Know

Extended Warranty Robocall Scam or Legit? 10 Red Flags to Know

Extended warranty robocall scam calls have become so common that "we've been trying to reach you about your car's extended warranty" is now a national punchline. But behind the memes lies a serious problem: billions of illegal calls, hundreds of millions in consumer losses, and an erosion of trust that affects legitimate businesses across the vehicle service contract industry.

Smartphone screen displaying spam risk warning for incoming extended warranty robocall scam

When your phone flags a call as "Spam Risk," trust it—especially for warranty-related calls.

This guide covers everything you need to know about auto warranty robocall scams—how they work, how to identify them, and what to do if you receive one.

4.7 Billion
Robocalls received by Americans in January 2025 alone
Source: YouMail Robocall Index

The Scale of the Extended Warranty Robocall Scam Problem

Extended warranty robocall scam operations aren't just annoying—they represent one of the largest illegal robocall operations ever investigated by federal authorities. The numbers tell the story:

31%
of adults get at least one scam call daily
$3,690
average loss for scam victims
7 in 10
Americans contacted by warranty scammers

According to the Federal Communications Commission (FCC), auto warranty robocalls generated more consumer complaints than any other type of unwanted call. At their peak in June 2022, scammers made nearly one billion auto warranty calls in a single month.

The Federal Trade Commission (FTC) received over 126,000 reports of auto-related fraud in just the first nine months of 2023, making it the sixth most commonly reported fraud category overall.

How Extended Warranty Robocall Scam Calls Work

Understanding the mechanics of an extended warranty robocall scam helps you recognize them instantly. Here's how a typical warranty scam call operates:

[Automated Voice]: "Hello, we've been trying to reach you about your car's extended warranty. Your warranty is about to expire, and this is your final notice. Press 1 to speak with a representative about extending your coverage, or press 2 to be removed from our list."

If you press 1, you're connected to a "representative" who will attempt to:

  1. Extract personal information — name, address, vehicle details, and eventually payment information
  2. Create urgency — claiming your warranty is expiring immediately or you'll lose special pricing
  3. Collect payment — for a "warranty" that either doesn't exist or provides virtually no actual coverage
Important: According to the FTC, a company needs your direct written permission to robocall you with sales pitches. If you receive an unsolicited robocall trying to sell you something, that call is illegal—regardless of whether you're on the Do Not Call Registry.

Where Scammers Get Your Information

Many people wonder how scammers know their phone number or even details about their vehicle. The information comes from multiple sources:

  • Data breaches — Personal information from breached databases is sold on the dark web
  • DMV records — Some states sell driver's license and vehicle registration data
  • Data aggregators — Companies that compile consumer data from various sources
  • Purchased phone lists — Bulk phone number lists are readily available for purchase
  • Random dialing — Some operations simply dial numbers sequentially

The fact that a caller knows your name or car model doesn't make the call legitimate. Scammers often have access to just enough information to sound convincing.

10 Red Flags That Identify an Extended Warranty Robocall Scam

🚩 Warning Signs of Extended Warranty Robocall Scam Calls
1. It's a robocall. You hear a recorded message instead of a live person when you answer. Legitimate warranty companies don't use automated sales calls.
2. You're asked to "press a button." Prompts to press 1 to speak with someone or press 2 to be removed are classic scam indicators. Pressing any button confirms your number is active.
3. Vague or missing details. The caller can't tell you specifics about your actual vehicle, existing warranty, or the company they claim to represent.
4. "Final notice" or extreme urgency. Claims that this is your "last chance," your warranty is "expiring today," or you'll "lose coverage" if you don't act immediately.
5. The number looks local but isn't. Scammers use "spoofing" to make calls appear to come from local area codes or even numbers similar to yours.
6. Requests for personal information. Legitimate companies don't ask for Social Security numbers, credit card details, or bank account information on unsolicited calls.
7. Large upfront payment required. Pressure to pay thousands of dollars immediately, especially via wire transfer, gift cards, or cryptocurrency.
8. Won't provide written information first. Refusal to send contract details, coverage information, or company credentials before requiring payment.
9. Threats or aggressive tactics. Warnings about legal action, loss of coverage, or other consequences if you don't comply immediately.
10. No verifiable company information. Can't or won't provide a physical address, website, BBB rating, or other credentials you can independently verify.

What Legitimate Warranty Providers Actually Do

The contrast between scam operations and legitimate vehicle service contract providers is stark. Here's what to expect from a legitimate company:

✓ Signs of a Legitimate Provider
No unsolicited cold calls. Legitimate providers don't robocall strangers. Contact happens because you initiated it—through their website, a quote request, or responding to an advertisement.
Transparent contract terms. Reputable companies provide sample contracts and full coverage details before asking for payment. You can read exactly what's covered and excluded.
No pressure for immediate decisions. Legitimate companies give you time to review information, compare options, and make an informed decision. They don't need you to "act now."
Verifiable business credentials. Established companies have physical addresses, BBB ratings, years of operating history, and customer reviews you can research.
Clear cancellation policies. Legitimate contracts spell out exactly how to cancel and what refund you're entitled to. Many offer cancel-anytime policies with no penalties.
Reasonable payment structures. Many legitimate providers offer monthly subscription options rather than requiring large lump-sum payments upfront.
Professional claims processes. Clear instructions for filing claims, networks of approved repair facilities, and established procedures for handling covered repairs.

Quick Comparison: Scam vs. Legitimate

Behavior Scam Operation Legitimate Provider
Initial Contact Unsolicited robocall Customer-initiated inquiry
Information Provided Vague, refuses to send details Full contract available for review
Sales Pressure "Act now or lose this offer" Take your time to decide
Payment Large sum immediately, wire/gift cards Monthly options, standard methods
Company Info Can't verify, no track record BBB rated, verifiable history
Cancellation Impossible to cancel or get refund Clear cancellation policy in writing

Government Crackdown on Extended Warranty Robocall Scam Operations

Federal agencies have taken significant action against extended warranty robocall scam operations. Here's a timeline of major enforcement actions:

February 2022
The FTC files a federal complaint against American Vehicle Protection Corp for conducting illegal robocall campaigns, ultimately resulting in a $6 million settlement and consumer refunds.
July 2022
The FCC orders all U.S. voice service providers to block auto warranty robocall traffic from an operation that made over 8 billion illegal calls since 2018.
August 2023
The FCC issues a record $300 million fine—the largest in agency history—against what it called "the largest illegal robocall operation" ever investigated. The scam network made over 5 billion calls to 500 million phone numbers in just one three-month period.
October 2024
The FTC issues refunds totaling over $449,000 to victims of the American Vehicle Protection extended warranty telemarketing scam.
August 2025
All 51 state attorneys general launch "Operation Robocall Roundup," a bipartisan effort sending warning letters to 37 voice providers demanding they stop allowing illegal robocalls through their networks.

These enforcement actions have had measurable impact. After the FCC's July 2022 order, auto warranty scam calls dropped by approximately 99% according to industry tracking data. However, scammers continually adapt, and new operations emerge to replace those that are shut down.

How to Protect Yourself From Extended Warranty Robocall Scam Calls

If You Receive a Suspected Extended Warranty Robocall Scam

  1. Hang up immediately. Don't press any buttons, don't say "yes" to any questions, and don't engage with the caller. Any interaction confirms your number is active.
  2. Don't call back. Even if the voicemail sounds legitimate, don't return the call. If you think it might be a real company, look up their official number independently and call that instead.
  3. Never provide personal information. No legitimate company will ask for Social Security numbers, credit card details, or bank information on an unsolicited call.
  4. Block the number. While scammers frequently change numbers, blocking known scam numbers reduces overall call volume.
  5. Report the call. Filing complaints helps authorities identify and shut down illegal operations (see reporting resources below).

Proactive Protection Steps

  • Register with the Do Not Call Registry at DoNotCall.gov or call 1-888-382-1222. While this won't stop illegal robocallers (who ignore the list), it reduces legitimate telemarketing calls and makes scam calls easier to identify.
  • Enable your phone's spam filtering. Most smartphones have built-in call screening that labels suspected spam. iPhone users can enable "Silence Unknown Callers." Android phones offer similar features.
  • Consider call-blocking apps. Third-party apps like RoboKiller, Nomorobo, and Hiya use crowd-sourced databases to identify and block known scam numbers.
  • Check with your carrier. Many phone providers offer free or paid call-blocking services. Contact your carrier to see what options are available.
  • Don't answer unknown numbers. If someone legitimate needs to reach you, they'll leave a voicemail. Letting unknown calls go to voicemail is one of the most effective protection strategies.
Person pressing decline button on phone to reject suspected extended warranty robocall scam

The safest response to an unknown warranty call: don't answer, or hang up immediately.

How to Report Extended Warranty Robocall Scam Calls

Reporting extended warranty robocall scam calls helps federal agencies identify patterns, build cases against illegal operations, and improve call-blocking tools used by carriers and apps. Every report matters.

FTC and FCC official logos representing agencies that handle extended warranty robocall scam complaints

The FTC and FCC are the primary federal agencies handling robocall complaints.

Official Reporting Resources

📞 FTC Do Not Call Complaints
Report unwanted calls and robocalls. The FTC uses complaints to identify scammers and publishes data daily to help carriers block illegal calls.
DoNotCall.gov/report.html • Phone: 1-888-382-1222
📱 FCC Consumer Complaints
Report violations of robocall and telemarketing rules. The FCC uses complaints to take enforcement action against violators.
FCC.gov Consumer Complaint Center
🛡️ FTC Fraud Reports
If you lost money or provided personal information to scammers, report the fraud directly to the FTC.
ReportFraud.FTC.gov
🏛️ State Attorney General
Your state AG may investigate local telemarketing fraud. Find contact information at USA.gov/state-attorney-general
💬 Report Spam Texts
Forward suspicious text messages to 7726 (SPAM). Your carrier uses these reports to block future spam texts.
What to Include in Your Report: The phone number that called you, the number shown on caller ID (if different), the date and time of the call, what the caller or recording said, and whether you lost money or provided personal information.

If You’ve Already Fallen Victim to an Extended Warranty Robocall Scam

If you provided payment information or personal details to a suspected extended warranty robocall scam operation, take these steps immediately:

  1. Contact your bank or credit card company. Dispute the charges and request a new card number. Many financial institutions have fraud protection that may help you recover lost funds.
  2. Place a fraud alert. Contact one of the three credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit file. The bureau you contact must notify the other two.
  3. Monitor your accounts. Watch for unauthorized charges or new accounts opened in your name. Consider a credit monitoring service.
  4. File official reports. Report to the FTC at ReportFraud.FTC.gov and consider filing a police report for identity theft.
  5. Document everything. Keep records of all communications, charges, and steps you've taken. This documentation may be needed if you pursue legal action or claim refunds.

Frequently Asked Questions About Extended Warranty Robocall Scams

Is every extended warranty robocall a scam?
No. Legitimate vehicle service contracts exist and can provide valuable coverage. The key difference is how contact is initiated. An extended warranty robocall scam is an unsolicited call you never requested. Legitimate coverage inquiries start when you contact a provider through their website, respond to an advertisement, or request information. If you didn't initiate contact, treat the call with extreme suspicion.
Why do I keep getting these calls even though I'm on the Do Not Call list?
The Do Not Call Registry only works against callers who follow the law. Scammers operating illegally ignore the registry entirely—in fact, being on the list and still receiving calls is itself a red flag that the call is illegal. The registry remains valuable because it reduces legitimate telemarketing, making scam calls easier to identify.
How do scammers know my car's make and model?
Vehicle information is more accessible than most people realize. Some states sell DMV registration data, data brokers compile public records, and information from data breaches circulates widely. However, many scam calls are actually generic—they may reference "your vehicle" without knowing specifics, hoping you'll fill in the details. Having your car information doesn't make a call legitimate.
Will blocking numbers actually help?
Blocking provides limited but real benefit. Scammers frequently switch numbers, so blocking one number won't stop all calls. However, consistent blocking combined with carrier spam filtering and third-party apps can significantly reduce call volume over time. The most effective strategy is simply not answering calls from unknown numbers.
What happened to the $300 million FCC fine?
The FCC issued its record fine in August 2023, but collecting fines from robocall operations is notoriously difficult. Many operate internationally or through shell companies designed to be judgment-proof. The FCC can refer unpaid fines to the Department of Justice for further enforcement. While collection rates are low, the fines and enforcement actions have significantly disrupted operations—auto warranty scam calls dropped 99% after the FCC's 2022 enforcement push.
What is STIR/SHAKEN and does it help?
STIR/SHAKEN is a technology framework the FCC requires phone companies to implement. It authenticates caller ID information, making it harder for scammers to "spoof" phone numbers. When working properly, your phone can verify whether a caller ID is legitimate. Implementation is ongoing—the FCC reported in 2025 that only 44% of phone companies have fully implemented the technology with anti-robocall policies.
Should I press 2 to be removed from the call list?
No. Never press any buttons on a suspected scam call. Pressing any key—even to "opt out"—confirms that your phone number is active and monitored, which typically results in more calls, not fewer. Simply hang up without interacting.
How can I research whether a warranty company is legitimate?
Start by verifying basic business information: physical address, years in operation, Better Business Bureau rating, and customer reviews from multiple sources. Legitimate companies provide sample contracts before requiring payment and don't pressure you for immediate decisions. Check that the company is licensed to operate in your state, and search for the company name plus words like "complaint" or "scam" to see what others have experienced. For guidance on evaluating extended warranty coverage, research what legitimate contracts should include.

The Bottom Line on Extended Warranty Robocall Scam Calls

Extended warranty robocall scam operations represent one of the most persistent consumer scam operations in recent history. While federal enforcement has significantly reduced their volume, vigilance remains essential.

The rules are simple:

  • Unsolicited robocalls selling warranties are illegal
  • Legitimate providers don't cold-call strangers
  • Never provide personal or payment information to unsolicited callers
  • When in doubt, hang up and research independently
  • Report scam calls to help authorities protect others

If you're genuinely interested in vehicle service contract coverage, do your research on your own terms. Visit company websites directly, request information in writing, review contracts before committing, and never let high-pressure tactics rush your decision.

Before purchasing any used vehicle, it's also smart to run a vehicle history report to check for hidden damage, salvage titles, or auction history that could affect your coverage options and long-term costs.

The best defense against warranty scams is an informed consumer.

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