Instead of accepting payment by phone with a credit card or check - such as your utility company does - scammers require to make payments with a prepaid debit card. They tell you to go buy one at the grocery store or the bank and call them back with the payment information. They then take the information you've given them about the prepaid debit card to print a new prepaid debit card.
The BBB said that thieves are turning to prepaid debit cards because the regulations and rules for electronic transfers have become stricter, and prepaid debit cards do not require identification use. In addition, these cards are difficult to trace because they are intended for single use only.
Here are some ways you can protect yourself against this utility fraud law.
1. Do not pay the bills with a prepaid debit card: The companies that provide utility services do not accept payments by prepaid debit cards. If someone call you and insists that you pay your outstanding bill with a prepaid debit card, then you should not give them any personal information. Hang up the phone and report the scam to the BBB.
2. Make the caller. If you receive a call from someone claiming to be a representative of your utility which threatens to turn off your utilities, make sure that this person actually works to your utility company. The best way to do this is to hang up the phone and call the phone number on your electric bill. Tell the representative of customer service that you want to know more about your bill because you just got a call from someone saying that you are suffering. The representative will be able to tell you the status of your bill.
The BBB also reminds consumers of not allow anyone into your home to check the electrical wiring, natural gas pipes or appliances unless you have an appointment your utility provider. Also, call your utility company to see if they sent someone to check the security of your home.
If you feel you have been contacted by a scammer and revealed your personal information, then you may want to consider signing up for a service protection against identity theft. These services monitor your information to make sure it is not sold to thieves or used inappropriately. If they noticed anything out of the ordinary or phishy, they send an alert to check the activity was done by you and not a thief. Check out this blog to find out why identity theft protection is a useful service to have and visit our Identity Theft Protection Compare the page to find out what each service offers in terms of protection.