Throughout 2025, scammers have become more sophisticated by targeting car buyers and car owners with schemes that can damage both their finances and their vehicles. Whether it’s a fake loan application or a text message scam, staying informed is the best step in staying protected. That’s why learning everything there is to know about loan fraud and text scams, including how to spot them early on, is crucial for all drivers.

Understanding Auto Loan Fraud in 2025

Auto loan fraud is no longer just about shady dealers; rather, it is about organized scammers using digital tools to falsify their applications online. These fraudsters often used stolen identities or fake driver’s licenses to apply for loans under the name of someone else, potentially even using your Social Security number. In other cases, they may submit forged pay stubs or falsified employment details in order to qualify for higher loan amounts. Typically, they target online car marketplaces and remote lenders as verification standards tend to be looser than at a dealership or a bank, credit union, or other financial institution.

How Social Media Fuels These Scams

The rise in auto loan fraud has, for the most part, been fueled by the corresponding rise in social media. Various platforms like TikTok, Facebook, and Instagram have become surprising hotbeds for auto loan scams. Criminals have even gone so far as to openly post tutorials on creating fake pay stubs, applying for loans using synthetic identities, and working around credit checks. While social media platforms are usually good about taking those videos down once they have been reported or flagged, they aren’t perfect. This miss can result in thousands upon thousands of people, if not more, seeing the videos and getting ideas.

In certain scenarios, these “auto lending” step-by-step guides are even disguised as financial hacks that make them attractive to desperate borrowers, so much so that they don’t even realize what they are doing. Some of these scammers even go so far as to promote services that promise guaranteed approvals (something that’s never possible) with the caveat being that there is a hidden fee.

What Are Toll and Warranty Texting Scams?

Beyond general auto loan fraud, you may also be targeted by scammers with a toll or warranty texting scam. These tricky scams involve drivers being hit with fake text messages from a phone number you don’t recognize, with two common scams being the most prevalent:

1. Toll Violation Scams: As warned by the Federal Trade Commission (FTC), consumers might receive a text saying they owe a small toll fee and a provided link that looks legit, yet will lead to a phishing site whose goal is to steal personal and banking account information.
2. Warranty Renewal Scams: These text messages frequently claim your vehicle warranty is about to expire and, once you frantically click to fix it, you may be asked to enter your VIN or payment info which scammers will then use for fraud or to resell on the dark web.

The largest red flags to watch for with toll and warranty texting scams are any messages sent that is promoting a false sense of urgency. Real warranty or toll vendors will not require action that prompts such a fast response that you don’t have time to think and, if you’re ever in doubt, you should contact the provider themselves through their website to request verification.

Key Red Flags to Watch for in Messages and Loan Offers

Beyond the above red flag that indicates you might be getting scammed, there are some others to watch out for that can be a strong indicator:

• Interest rates that seem too good to be true (like 0% with bad credit)
• No hard or soft credit check is required, like credit cards
• Any type of pressure that requires you to act immediately or risk losing out on the deal
• A generic greeting, such as “Dear Customer”
• Constant misspelled words or awkward grammar
• Links that don’t spell out or associate with the company
• Requests for personal or financial information via text with no effort to move to an official company platform

If anything even feels slightly off, you should take the time to pause and investigate to ensure you aren’t getting scammed. A five-minute Google search could potentially save you thousands of dollars.

How to Protect Yourself and Your Vehicle

In the event you believe you’ve been subject to a scam, there are a few different approaches you can take to attempt to resolve the issue. First and foremost, freeze your credit if you suspect your identity has been stolen (possible identity theft) or if you don’t plan to take out any new personal loans in the near future.

Review any and all paperwork thoroughly as well, especially if you are working with new or unfamiliar lenders. On an ongoing basis, keep one eye on your credit score to ensure nothing is amiss while only working with reputable and licensed lenders for your needs.

You may want to avoid peer-to-peer sellers whenever possible, especially if they seem too casual about paperwork, as this can be a sign that they are a scammer. Above all else, take the time to verify any toll or warranty message you receive directly with your state’s authoritative body or your vehicle protection provider.

The Role of Vehicle Protection in Financial Security

While a scam focuses on getting your money, it can also affect the long-term health of your vehicle. Some scammers may go so far as to sell you fake service plans or use fake claims to void your legitimate coverage. Having a trusted auto protection plan through Endurance Warranty, though, can help you avoid warranty scammers while simultaneously getting you effective protection for your vehicle.

With a range of protection plans to choose from, from high-level stated coverage to comparable to the manufacturer warranty that accompanies a new car, there’s coverage for everyone. Additionally, every Endurance plan comes with standard benefits such as 24/7 roadside assistance, rental car reimbursement, trip interruption coverage, and more.

In addition, Endurance plans also come with one year of Elite Benefits, for a small activation fee, with bonus perks like up to $500 in collision coverage, tire repair or replacement, and even more.* With these perks and the assurance that you’re dealing with verified repair shops, you can avoid fraudulent claims while enjoying protection for your vehicle.

Enhance Your Road Safety With Endurance

Nobody wants to find themselves in the position where they realize they’ve been the subject of a successful scam. Recovering from this event, both financially and on a personal level, can take months or even years. Always look for the key signs that someone may be trying to trick you into giving your personal information for a fraudulent car loan or trying to sign you up for a fake warranty. When in doubt, reach out to the provider, the FTC, or another government authoritative body to confirm the message you are receiving.

To at least remove your concerns about getting a warranty scam, though, consider partnering with Endurance Warranty for your auto protection needs. With access to certified repair shops and exclusive benefits, you can save on costs while also keeping your vehicle in tip-top shape.

Reach out to one of our service plan advisors at (800) 253-8203 or request a FREE quote online. You can also shop our eStore to see your price and plan recommendations right away.