According to the Federal Trade Commission, more than 3 million consumers filed fraud complaints last year. Debt collection, identity theft and imposter scams were the most common complaints. That’s likely just a fraction of the fraud being perpetrated in this country.
In one common “impostor scam,” someone pretending to be a utility employee calls and threatens shut-off within an hour if they do not receive immediate payment via a pre-paid card. Victims are given a phony phone number to call back after they have purchased the cards at the closest retail store.
Scammers are growing more sophisticated – using technology to spoof caller ID numbers and mimic voice prompts heard on a legitimate customer service line. When the customer calls back with payment, a fake representative asks for the pre-paid card number or the number on the receipt. Within seconds the money is gone.
These thieves can – and do – target anyone. But they more often target small business customers because they have larger bills than residential customers, but don’t have the checks and balances of a large business.
Some stories are heartbreaking. An employee at an animal hospital withdrew money from her personal bank account to pay a thief. A dental assistant did the same. On the Friday before the busy Labor Day weekend, a pizzeria owner was conned out of $2,500. When told his payment did not go through, he paid again.
To combat these con artists, more than 40 utilities across North America — including PSE&G — have joined forces to share information, resources and scam-fighting best practices. The collaborative established the third Wednesday in November “Utilities United Against Scams Day.”
There is a reason the IRS scam call center bust last month in India made big news. Hiding behind an untraceable phone, sometimes half a world away, scammers know it’s doubtful they will be caught. By increasing customer awareness and educating people about how to spot a scam, we can spare many would-be victims and make the thieves’ underhanded job a lot harder.
