Internet Scam: Utility Bills

If scammers are good at anything (it certainly isn't how to format their emails), they are good at seeing an opportunity.

With the record heat wave in most of the U.S., rising utility bills, and a poor economy, scammers have been rushing in like so many cockroaches, to take advantage.

People are receiving emails and phone calls pitching a federal government 'utility payment assistance program'. It is sometimes described as a bailout program authorized by the Obama Administration, and thus this scam has also been called the "Obama utility bill scam". Victims are given bank account and routing numbers to use when paying their bills online, but only after they "register" by surrendering their Social Security numbers and other personal information. This how the scammer can then steal your identity. The account numbers are bogus, no one is paying your bill but the utility company may initially accept and credit the payment, but then realize the account is bogus and withdraw that credit to the customer.

10,000 people in New Jersey alone fell for this scam over recent weeks, but the problem is wide-spread, occurring in Florida, North Carolina, Pennsylvania, Indiana, across New England as well as California and Utah. I'm guessing any state that experiences any heat is eventually going to run across this scam.

There is no such program but if you get one of these emails or phone calls, call the utility company directly to verify BEFORE giving anyone your information. But really, there is no bailout program to pay your utility bill.