Many people in the U.S. and Canada have been targeted for a new kind of utility scam wherein people had to part with their money due to pre-paid debit cards. So, now it is high time that you educate yourself about this scam and try to avoid it thereby saving your hard earned money.
What is the new scam all about?
As per the report of the Better Business Bureau (BBB), the scam artists are contacting the people stating that they are employed with the local gas, water or electric company. They convince the people about the fact that they have been late on their utility bills. They even go to the extent of saying that the services for a particular utility will be cut off if it's not paid off immediately. When people get scared about the whole situation, these scammers ask the people to purchase a prepaid debit card which will help them pay their bills and call them back with the card number. Once, they know the card number, the scam artists drain the whole amount available on the card.
The prepaid debt card scams have become popular in the recent times as the wire transfer services have implemented fraud detection systems. This makes it difficult for the scammers to steal money from people. Also, in case of pre-paid debit cards, they don't have to show any proof of identity to collect or spend money.
How can you save yourself from this scam?
Now that the new utility scam is hurting many people, it's high time that we take steps to avoid such scams. Here are few important tips which will help you save yourself and your hard earned money from this scam. Let's take a look:
- Consider it a red flag if someone asks you to pay utility bills through a prepaid debit card: You should always remember a fact that utility companies normally accept a credit card or a check to receive your payments. So, whenever someone asks you to pay your utility bills through a pre-paid debit card, disconnect the call! DO NOT make the mistake of paying utility bills through pre-paid cards. Also, remember that if you pay with a prepaid debit card, the transaction cannot be reversed.
- Beware of the high-pressure policy: Scammers will mainly try to scare and confuse you so that you are under high pressure to listen to them. Their threats will mainly include the likes of cutting off services unless you make an immediate payment, etc. When you face such a call, don't get scared, end the call and get in touch with the customer service number as mentioned on your utility bill. Speak to a real representative and check out the matter.
- Ask for the ID proof if someone comes at your home and claims that he/she is from the utility services: Unless you have an appointment with them or unless you are sure about the person's identity, do not let the person enter your house. An ID proof will be of great help to you in this regard. If you haven't scheduled any appointment with the utility services and still someone visits you, immediately get in touch with your utility company to confirm the details.
Apart from this new utility scam, the utility bill scam, which was predominant last year, has again resurfaced. Under this scam, the scammer told people that the federal government will help them in paying the electric bill. But actually that is not the case! So, educate yourself and stay safe!