That 'too good to be true' rental car price you saw is probably a scam
As if this summer's looming rental car shortage isn't stressful enough for travelers eager to make plans, scammers are taking advantage of the situation, using fake customer service phone numbers and low rental prices that seem too good to be true -- because they are.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
The Better Business Bureau said in a scam alert earlier this month that its Scam Tracker, which logs reports filed by consumers with regard to nefarious business practices, was seeing cases of car rental fraud.
What is a car rental scam?
The BBB warned would-be customers about Googling rental company phone numbers or using ones listed in sponsored ads (the listings marked "ad" that appear near the top of search results). Sometimes those numbers aren't legitimate and will connect you directly to someone trying to take advantage of your need for a set of wheels.
The organization also says shoppers should be highly skeptical of any special offers that require payment in the form of gift cards or prepaid debit cards, no matter what the "agent" on the phone might claim.
"The representative insists that the 'deal' is a partnership with the gift or pre-paid debit card provider," the BBB alert says. "You purchase the cards and share the PIN with the representative. In several reports, the scammer insists that the money didn't transfer, and you need to purchase another card. But no matter how many cards you buy, the outcome will be the same. The 'special offer' is a scam, and the rental car doesn't even exist."
One such report said the alleged agent, who claimed the rental car company had partnered with Amex, promised the rental would be delivered to the train station where the customer was waiting, but it never showed up.
Another report states that a phony representative, who purported to be affiliated with Enterprise, asked the customer to hang up, purchase the required cards, and call him back to share the PINs. The customer checked Enterprise's website and noticed that the actual customer service number was different from the one they had used to call the fake agent earlier.
Although there are several credit cards that offer rental car perks -- such as elite rental status, car rental insurance coverage or discounts for booking using your card -- you will never have to purchase separate prepaid gift cards or debit cards in order to receive those extras.
How can I avoid car rental scams?
Here are some additional tips the BBB provided that can help you to avoid car rental scams:
- Never make payments with prepaid debit cards or gift cards. Scammers prefer these payment methods because there is nothing you can do to get your money back. Remember, legitimate companies almost always accept credit cards as the primary means of payment.
- Use contact information listed directly on the business' website instead of relying on an Internet search for customer support phone numbers. (Always double-check the URL.)
- Beware of sponsored links. Fake websites sometimes pop up in your web browser's sponsored ad section and appear at the top of the search results. Be careful when clicking. Hover over the URL to be sure it's the right one.
- When in doubt, verify special deals directly with the company. If you are unsure about a promotional offer, get the customer service number from the company's official website. Call the company directly to make sure the deal is real.
Related: How to avoid falling prey to the most elaborate travel scam I've ever seen
If you do accidentally find yourself the victim of a scam and your personal information has been compromised, there are steps you can take, including filing reports with your credit card company, signing up for fraud alerts and closely monitoring your bank account and credit card statements.
Why are rental cars so hard to find in the first place?
At the beginning of the pandemic, demand decreased so much that many rental agencies had to sell off large portions of their fleets. Now that travel has somewhat rebounded, car manufacturing lags mean it's nearly impossible for fleet sizes to increase quickly enough to keep up with demand.
Related: Can't find a car rental? Here are 7 tips that may help
Top offers from our partners
How we chose these cards
TPG featured card
Rewards
10X | Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel |
5X | 5X miles on flights booked through Capital One Travel. |
2X | 2 Miles per dollar on every purchase, every day |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.Pros
- Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
- Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
- 10,000 bonus miles (worth $100 toward travel) each account anniversary.
Cons
- The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
- If you don’t travel frequently, this might not be the best card for you.
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
- Receive up to a $100 credit for Global Entry or TSA PreCheck®
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
- Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023
Rewards Rate
10X | Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel |
5X | 5X miles on flights booked through Capital One Travel. |
2X | 2 Miles per dollar on every purchase, every day |
Intro Offer
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel75,000 bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.Pros
- Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
- Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
- 10,000 bonus miles (worth $100 toward travel) each account anniversary.
Cons
- The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
- If you don’t travel frequently, this might not be the best card for you.
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
- Receive up to a $100 credit for Global Entry or TSA PreCheck®
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
- Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023