Utility scammers move to payment apps
By Greg Collier
Winter in the Midwest is an opportune time for utility scammers to find new victims. Power company ComEd, which serves the greater Chicago area, has reported that shut-off scams have increased by 150% and have claimed $27,000 from customers in just one month. No one who lives in the Midwest wants to face the possibility of losing their power during a cold Winter. These factors can create a perfect storm of fear that scammers are ready to take advantage of.
The shut-off scam is exactly what it sounds like. Scammers will call up their victims while posing as the local electricity provider. The victims will be told they’re behind on their electricity bill and their service is about to be shut off in a matter of minutes. The scammers then demand an immediate payment to prevent the victim’s service from being terminated. Previously, scammers would get their victims to pay in gift cards, pre-paid debit cards, and, in some instances, cryptocurrency such as Bitcoin. But now, scammers are moving to a different method for extracting money from their victims.
According to the Better Business Bureau, shut-off scammers are using payment apps such as Venmo, Cash App, and Zelle, which makes sense in a strange way. With gift cards and cryptocurrency, scammers have to direct their victims to physical locations to complete the transaction. With payment apps, scammers can get the money almost immediately with minimal effort. It also helps the scammers that they can block the victim on these apps once they receive the payment. These apps also do not have a lot of customer protection once a user has been scammed.
As always, no utility company will threaten you with termination over the phone. If you were to get behind in your bill, you would receive a written warning in the mail before any termination of service would happen. Also, please keep in mind that payment apps like Venmo, Cash App, and Zelle are only supposed to be used with people you know personally. Anyone else who asks for payment through these apps just may be trying to scam you.
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