$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
phone screen protection plan scam
Scammers sell fake or worthless phone screen protection plans through pop-up ads, SMS, or in-person kiosk sales, collecting monthly fees for coverage that does not exist.
“extended warranty scam”
↑ 284%Key indicators
Usually targetsPhone users
Often hitsEducators and students
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
Scammers promote screen protection plans through pop-up ads, SMS messages, or mall kiosks targeting smartphone users
2
Victims sign up for what appears to be affordable monthly coverage with promises of free screen repair or replacement
3
When a claim is filed, the company either does not respond, denies the claim based on fine print exclusions, or has disappeared entirely
What to do first
Purchase device protection only through your carrier, the phone manufacturer, or a well-known insurer like Asurion or AppleCare
Related terms
fake screen insurancephone protection plan frauddevice coverage scamWarranty scamsSMSRisingPhone usersSmartphone usersYoung adultsEducators and studentsUnited StatesUnited KingdomIndiafake screen insurancephone protection plan fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Lisa, 35, a phone users, encountered what appeared to be a legitimate warranty scams situation while using SMS. Scammers promote screen protection plans through pop-up ads, SMS messages, or mall kiosks targeting smartphone users
Step 2
What happened next was calculated: Victims sign up for what appears to be affordable monthly coverage with promises of free screen repair or replacement
Step 3
The pressure escalated quickly: When a claim is filed, the company either does not respond, denies the claim based on fine print exclusions, or has disappeared entirely
The outcome
Lisa realized something was wrong when plan is sold by an unknown company not affiliated with your carrier or phone manufacturer. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Purchase device protection only through your carrier, the phone manufacturer, or a well-known insurer like Asurion or AppleCare Lisa's experience shows why plan is sold by an unknown company not affiliated with your carrier or phone manufacturer and monthly fee seems low but there is no clear claims process or contact information for filing a claim are the clearest early warning signs.
How to identify it
- Plan is sold by an unknown company not affiliated with your carrier or phone manufacturer
- Monthly fee seems low but there is no clear claims process or contact information for filing a claim
- Pop-up ad or text claims your phone is not protected and offers instant coverage
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Purchase device protection only through your carrier, the phone manufacturer, or a well-known insurer like Asurion or AppleCare
- ✓Research any protection plan company on BBB and consumer review sites before enrolling
- ✓Report fraudulent screen protection plans to the FTC and your state consumer protection agency
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The BBB Scam Tracker shows that device protection scams have increased as smartphone prices rise, with complaints about denied claims and unreachable companies
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Purchase device protection only through your carrier, the phone manufacturer, or a well-known insurer like Asurion or AppleCare
- ✓Research any protection plan company on BBB and consumer review sites before enrolling
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The BBB Scam Tracker shows that device protection scams have increased as smartphone prices rise, with complaints about denied claims and unreachable companies
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Phone users, Smartphone users, Young adults
Geographic concentration
United States, United Kingdom, India
Primary channel
SMS — Warranty scams
Why this group is vulnerable
Phone users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The BBB Scam Tracker shows that device protection scams have increased as smartphone prices rise, with complaints about denied claims and unreachable companies
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about phone screen protection plan scam
How does the phone screen protection plan scam work?+
Scammers promote screen protection plans through pop-up ads, SMS messages, or mall kiosks targeting smartphone users Victims sign up for what appears to be affordable monthly coverage with promises of free screen repair or replacement When a claim is filed, the company either does not respond, denies the claim based on fine print exclusions, or has disappeared entirely
What are the warning signs of phone screen protection plan scam?+
Plan is sold by an unknown company not affiliated with your carrier or phone manufacturer Monthly fee seems low but there is no clear claims process or contact information for filing a claim Pop-up ad or text claims your phone is not protected and offers instant coverage
What should I do if I encounter phone screen protection plan scam?+
Purchase device protection only through your carrier, the phone manufacturer, or a well-known insurer like Asurion or AppleCare Research any protection plan company on BBB and consumer review sites before enrolling Report fraudulent screen protection plans to the FTC and your state consumer protection agency
Who is most at risk for phone screen protection plan scam?+
This scam primarily targets Phone users, Smartphone users, Young adults. It is most commonly reported in United States, United Kingdom, India and typically appears on SMS.
Is phone screen protection plan scam on the rise?+
phone screen protection plan scam is currently on the rise with growing reports. It has been reported across US, UK, IN. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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