There is a rumor circulating across the United States stating that President Obama has approved a new stimulus package which will pay for all of a person's utilities. Some variations have stated it would pay for student loans as well. It is a scam. The government is not giving out grant money to pay for utility bills or to pay off college student loans.
Scammers are primarily contacting consumers via text messages, phone calls, fliers, and social media platforms to ask for a person’s banking information and numbers on their Social Security card. After those credentials are given, the scammer gives what seems to be a legitimate routing number to give to their utility company.
The utility company accepts the routing number, but may not process the payment right away. The customer believes that their payment is set, and the company’s confidence is that the consumer has sufficient funds to pay from that account. When the utility company then tries to process the payment, the number bounces back as not usable or with insufficient funds. As a result, the utility company starts assessing fees to the consumer.
The following are some tips from the local BBB:
- If you gave out your banking information to a scammer, contact your bank immediately to put a stop to further withdrawals. It may be a good idea to check your credit report and notify the three major credit bureaus about the situation.
- Never share your Social Security number, credit card number, banking information, or any personal details to anyone you do not know, unless you initiated the contact and feel confident with whom you are speaking.
- If you receive a call claiming to be your utility company and feel pressured for immediate payment or personal information, hang up the phone and call the customer service number on your utility bill.
- Never allow anyone into your home to check electrical wiring, natural gas pipelines, or appliances unless you have scheduled an appointment or have reported a utility problem. Also, ask the utility employees for proper identification.
- Always think safety first. Do not give in to high pressure tactics over the phone for information or allow an unknown person into your home.
For more information on how to avoid scams, or to report a scam, visit www.chattanooga.bbb.org or call 423 266-6144.