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 seem legitimate, which can confuse and concern recipients. 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 share your personal information, they may steal your identity or charge you for unreceived services. 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 find out if anyone has filed complaints 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 always a good idea if something doesn’t seem right, especially if the company approached you. Watch out for scams with signs like a hard sell, pressure to act quickly, a false warranty claim, or pretending to be a local institution.
TEG is committed to protecting our members’ 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.
