Home Warranty Scams
Home warranty scams are rising. with millions of dollars lost to fraudsters each year. These scams can take many forms, but they all share one common goal: stealing your money.
Scammers often pretend to be from companies you know and trust. For example, TEG Federal Credit Union members have reported receiving an unexpected letter from Helping Hand Home Warranty telling them their home warranty is about to expire.
The credit union’s name on the letter makes it misleadingly look like it comes from a legitimate business, and naturally, recipients might be confused and concerned. Make sure you read the fine print.
These fraudsters hope you won’t pay attention to the letter’s contents and pay without asking questions. If you look closely, you may realize that you never had the policy to begin with.
Once you’ve given them your personal information, they may use it to steal your identity or charge you for services you never received. Sometimes, they may even try to sell you a fake home warranty.
How can you protect yourself from home warranty scams?
There are a few things you can do to protect yourself from home warranty scams:
- Legitimate home warranty companies should have websites that tell you who they are and what they do.
- Only deal with reputable home warranty companies. Check with the Better Business Bureau (BBB) to see if any complaints have been filed against the company.
- Don’t give out your personal information to anyone you don’t know and trust.
- Be wary of any offers that sound too good to be true. Check reviews.
- If you think you’ve been the victim of a home warranty scam, report it to the FTC and your state attorney general’s office.
Keep an eye out for red flags!
Scammers often use aggressive marketing and know to get around our better judgment. Taking a closer look is a good idea if something doesn’t seem right, especially if the company approached you. Beware of solicitations that include signs of a scam such as a hard sell, the pressure to act fast, the false implication of an existing warranty that’s in danger of expiring, and the attempt to imply a nonexistent relationship with a legitimate local institution.
At TEG, we’re committed to protecting our customers’ personal information. If you have any doubt that any communication you receive is really coming from TEG Federal Credit Union, please get in touch with us directly at 845.452.7323.
Please note that TEG has partnered with Miscedria & Associates and Trustage to try to help you save money on your auto, homeowners, and life insurance. Visit https://www.tegfcu.com/invest-and-insure/insurance/ to learn more and get a quote today.