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Automated message scam causes concern among auto dealers

Published on December 13, 2008
Published on July 10, 2009
Matthew Barton  RSS Feed
Topics :
Saskatchewan Financial Services Commission , United States , Eastern Canada , New York

A scam that has raised concerns with local insurance agents is also leading to numerous calls to auto dealers.
"We probably get three to four calls per day from customers who've been told they need to buy more (automobile) insurance," said Don Reidy, the business manager of Western Dodge.
The scam, which uses automated message, started last year in the United States and were reported as early as October in Eastern Canada. "You hear about these scams all the time but you never think it will happen here. But this one is leaving a big footprint," said Reidy.
The Saskatchewan Financial Services Commission is working with industry members and police to track the calls. They are coming from all over the United States, ranging from New York to Missouri. They've received more than 60 complaints so far.
"Only deal with licensed insurance companies. Never give your credit card or banking information over the phone," said Jim Hall, the superintendent of insurance with Sask. Financial Services.
Hall said consumers are calling in after being harassed into buying insurance or warranties for cars. Businesses are not allowed to pressure and harass people over the phone.
"Unfortunately, people have given out their credit card numbers. We're advising them to call the credit card companies and get the charges removed. People should also call their banks and make sure their information isn't compromised."

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