'Your Alarm Provider Went Out of Business' Scam
A salesperson claims your home-security company was bought out or went under and pressures you to switch or 'upgrade,' locking you into a costly new contract.
Think a message like this reached you? You can check it right now.
What this scam is
Someone calls or comes to your door claiming your alarm/security provider went out of business, was acquired, or that your system needs an urgent upgrade, and pushes you to sign a new monitoring contract on the spot — sometimes while implying they're from your current company. You end up locked into a long, expensive contract (possibly on top of your existing one) with misrepresented terms. Verifying directly with your actual provider before signing anything is the defense.
What it usually looks like
- A claim your security company closed or was bought out.
- Pressure to switch or 'upgrade' immediately.
- A new long-term monitoring contract to sign now.
- Implications they represent your current provider.
Common warning signs
- Unsolicited claims about your provider's status.
- Sign-now pressure for a new contract.
- Vague or misrepresented terms.
- Being locked into a second contract.
Example wording scammers use
“Your alarm company went out of business — we're taking over accounts. Sign here to keep monitoring active.”
“Your system is outdated; upgrade today or lose coverage.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Your signature on a costly new contract.
- To exploit confusion about your provider.
- Your payment and personal details.
What to do
- Call your actual security provider (number on your bill) to verify status.
- Never sign a new monitoring contract under pressure.
- Read all terms and cancellation policies.
- Report high-pressure door-to-door sales.
What to do if you already responded
- Use any cancellation window in writing; dispute charges if misled.
- Verify with your real provider.
- Report at reportfraud.ftc.gov and your state AG.