FTC Annual Report — The Biggest Auto Repair and Dealer Scams Targeting Older Adults in 2025

Every December, the Federal Trade Commission submits its annual report on elder fraud to Congress. The December 2025 report documented $4.9 billion in losses attributed to fraud targeting adults 60 and older — a 43% increase from the prior year. Adjusted for underreporting (most fraud against older adults goes unreported, the FTC estimates), the real number is substantially higher.

Auto-related fraud is a significant and consistently underrepresented portion of that total. Repair scams, fake warranty offers, and dealership add-on fraud disproportionately affect older adults, and the patterns are specific enough to be worth understanding whether you're a senior yourself or a family member trying to protect someone you care about.

Auto Repair Scams Targeting Seniors

The driveway mechanic scam — where someone knocks on the door claiming to have "noticed something wrong" with a vehicle while doing work in the neighborhood — disproportionately targets older homeowners. The playbook: identify an inexpensive, common service (sealing the driveway, treating the roof), knock on doors in residential neighborhoods, and use the opening conversation to raise concerns about the homeowner's vehicle. Once invited to look, they find serious problems. They can fix it today, cash only. The "repair" is either unnecessary, done incompetently, or not done at all.

Seniors living alone, or those who rely on a vehicle for independence and are anxious about losing it, are particularly vulnerable to this approach. The urgency is manufactured. The credentials are nonexistent.

What to do: No legitimate mechanic operates door-to-door. If someone approaches you this way, decline, take down their vehicle description and license plate if possible, and report to local police and the FTC.

Extended Warranty and Service Contract Robocalls

The FTC's report identifies warranty robocall fraud as one of the highest-volume auto-related scams by complaint volume. The calls typically claim that a vehicle's warranty is "about to expire" and offer to extend it for a fee — often collected upfront. The "policy" provided is either a fraudulent document or an unenforceable contract from a shell company.

Older adults who purchased vehicles years ago and may be legitimately concerned about repair costs as warranties expire are the primary target demographic. The calls often use spoofed numbers that appear to come from official sources, and scripts that create urgency ("your coverage expires in 48 hours").

The FTC settled a $10 million action against CarShield in 2024 for misleading advertising, but the broader robocall warranty fraud industry continues. If you receive an unsolicited call about your vehicle warranty, hang up.

Dealer Add-On Fraud and Cognitive Pressure

The finance office at a car dealership is a high-pressure, deliberately confusing environment for anyone. For older adults — particularly those dealing with cognitive changes, vision challenges that make reading dense contract language difficult, or simply less familiarity with finance documents — the vulnerability is amplified.

The FTC's Lindsay Automotive settlement ($75 million) and its warning letters to 97 dealer groups specifically called out practices that exploit confusion and time pressure in the finance office: products added without consent, mandatory fees obscured until the last moment, financing terms that changed from what was verbally agreed.

Practical protection: If a family member is purchasing a vehicle, consider going with them. A second set of eyes in the finance office is one of the most effective fraud prevention tools available. Ask for all documents to be reviewed at home before signing — a legitimate dealer will allow it. One that won't is telling you something.

Where to Report Auto-Related Fraud Against Older Adults

  • FTC: reportfraud.ftc.gov (online complaint portal, routes to relevant agencies)
  • NCOA ElderCare Locator: eldercare.acl.gov — connects to local aging services and fraud assistance
  • FBI's IC3: ic3.gov — for internet-enabled fraud
  • Your state AG's consumer protection division: most have elder fraud units with direct intake lines
  • AARP Fraud Watch Network Helpline: 1-877-908-3360 — free, staffed by trained volunteers

A Note on Underreporting

The FTC's $4.9 billion figure represents reported losses. Research consistently shows that elder fraud is significantly underreported — victims may feel embarrassed, fear family concern, or simply not know where to report. Some don't realize what happened to them was a crime.

If you or someone you know suspects they were defrauded in an auto repair or purchase transaction, it is worth reporting even if you don't expect to recover money. Reports create data. Data drives enforcement. Enforcement stops the next victim.

For a complete elder fraud resource guide and auto repair red flags, visit /avoiding-scams/.

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