By LORI SWANSON, Minnesota Attorney General
In tight economic times, some Minnesota families struggle with their utility bills. Some Minnesotans are now being targeted by scam telephone callers who claim that the federal government will help pay their utility bills. The scammers then use this falsehood to try to convince people to disclose their Social Security and banking information. That information is then used to commit identity theft. The calls are part of a national scam, in which the fraudsters attempt to trick individuals into disclosing their personal financial information in order to make unauthorized withdrawals or even drain their bank account.
“Joan” received a telephone call from a woman claiming that a new federal government program could provide $1,000 to help her pay her utility bills. The woman indicated that she could verify “Joan’s” eligibility for the new program if she provided her Social Security information, which she did. The woman then claimed that “Joan” was eligible for the new federal energy assistance program and asked her to read the bank routing information on one of her checks in order to process the “payment.” “Joan” then read her banking information over the phone, and the woman gave her a supposed “processing” number to use when she called her utility company’s automated bill pay system. Although her utility company initially appeared to honor the payment, it was determined to be fraudulent several days later. “Joan” soon discovered that the scammers had used her bank information to take money out of her account, leaving her in even worse financial shape.
How the Scam Works. Fraudulent operators attempt to contact potential victims by phone, text message, flyers, or through the Internet to try to trick them into disclosing their personal information in connection with a supposed new federal “energy assistance” program. The scam artists may use aggressive tactics to convince a person to make a rash decision on the spot, such as telling them that the offer is only available to a limited number of people, and that if they do not disclose their information immediately, they will lose out on the “opportunity” for assistance.” Don’t believe these claims. In reality, the scammers are looking to use the victim’s personal financial information to make unauthorized withdrawals from their account.
Tips to Avoid Energy Assistance Scams. The Attorney General’s Office offers the following tips:
• Watch out for scams that try to take advantage of the financial squeeze many people face in the tough economy. Scammers take advantage of people’s economic difficulties by promoting “too good to be true” offers, including everything from bogus help with utility bills to bogus help with mortgages and credit cards.
• Never disclose your personal financial information to someone you do not know over the telephone or Internet. Disclosing such information to unknown entities can lead to identity theft and unauthorized withdrawals from your bank accounts.
• Don’t be rushed. Scam operators rely on aggressive tactics to trick their victims into immediately disclosing information that they normally wouldn’t disclose. Don’t fall for pressure tactics that force you to make a decision on the spot. Take your time and protect your information.
• If you receive a call or message from someone claiming to be from your utility company asking you to disclose personal information in order to qualify for energy assistance, hang up the phone.
• If you require energy assistance, contact the State of Minnesota directly to inquire about eligibility.
