$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Scammers charge a fee to register a product warranty that is actually free, targeting consumers who are unfamiliar with standard warranty registration processes.
“extended warranty scam”
↑ 284%Key indicators
Estimated impact
$640
median reported loss
Scam breakdown
Scammers send texts or emails to recent buyers claiming their warranty must be registered for a fee to become active
Victims pay the registration fee and provide personal details, which are then used for further fraud
The warranty was already active for free from the manufacturer, and the fee provided no additional coverage
What to do first
Know that most manufacturer warranties activate automatically at purchase and registration is free if required at all
Related terms
Real-world example
Based on reported patterns. Names and details are illustrative.
The setup
Laura, 35, a consumers, encountered what appeared to be a legitimate warranty scams situation while using SMS. Scammers send texts or emails to recent buyers claiming their warranty must be registered for a fee to become active
Step 2
What happened next was calculated: Victims pay the registration fee and provide personal details, which are then used for further fraud
Step 3
The pressure escalated quickly: The warranty was already active for free from the manufacturer, and the fee provided no additional coverage
The outcome
Laura realized something was wrong when a text or email claims you must pay a fee to activate your free manufacturer warranty. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Know that most manufacturer warranties activate automatically at purchase and registration is free if required at all Laura's experience shows why a text or email claims you must pay a fee to activate your free manufacturer warranty and the message arrives shortly after a purchase, suggesting your data was obtained from a retail breach or data broker are the clearest early warning signs.
How to identify it
What to do now
What to save before reporting
How big is this problem
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.
$12.5B
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Imposters
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
Recovery and follow-up
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.
Consumer advocacy groups report that warranty registration fee scams frequently target buyers of electronics and appliances, exploiting confusion about warranty terms
OpenScam research
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
Who is most at risk
Primary targets
Consumers, Older adults, Phone users
Geographic concentration
United States, Canada
Primary channel
SMS — Warranty scams
Why this group is vulnerable
Consumers 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
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
Source notes
Frequently asked questions
Scammers send texts or emails to recent buyers claiming their warranty must be registered for a fee to become active Victims pay the registration fee and provide personal details, which are then used for further fraud The warranty was already active for free from the manufacturer, and the fee provided no additional coverage
A text or email claims you must pay a fee to activate your free manufacturer warranty The message arrives shortly after a purchase, suggesting your data was obtained from a retail breach or data broker The company name does not match the product manufacturer
Know that most manufacturer warranties activate automatically at purchase and registration is free if required at all Register warranties only through the manufacturer official website or the registration card included in the product packaging Report suspicious registration fee requests to the manufacturer and to the FTC
This scam primarily targets Consumers, Older adults, Phone users. It is most commonly reported in United States, Canada and typically appears on SMS.
warranty registration fee scam is currently on the rise with growing reports. It has been reported across US, CA. 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.