Cutting-Edge Con Artists Demand Bitcoin

One of the most common, infamous phone scams — right up there with phony tax collectors — is the con game where the caller pretends to be from your utility company about an overdue bill. The newest iteration, Con Edison reports, is scammers calling customers and claiming they owe a deposit for their smart meter.

The crooks tell the customer to make an immediate payment by Bitcoin or the company will turn off their power.

Don't fall for it.

• Con Ed does not require deposits for the smart meters it is installing at homes and businesses.
• The company does not accept payment by Bitcoin.
• Con Ed does not call customers and demand immediate payment.

“These scammers take tens of thousands of dollars a year from our customers by sounding sincere while they lie,” said Jim Duggan, a manager in Con Edison’s Corporate Security department. “We want our customers to be able to recognize signs that someone is a professional criminal trying to steal from them.”

The new scam involving false claims about smart meters and Bitcoin usually targets business customers. The scammers call when the business can least afford to lose power – such as just before the lunch or dinner rush for a restaurant.

Utility bill scams like this have become so ubiquitous that more than 100 electric, gas and water providers from North America have dedicated this week to educating customers on how they can avoid becoming victims.

The companies, members of Utilities United Against Scams, have declared Nov. 11-17 to be National Utility Scam Awareness Week and Wednesday to be National Utility Scam Awareness Day.

Central Hudson reports a couple of other new scams to watch out for.

One is "the government will pay your utility bill" scam. The crooks say they're from a federal agency and give victims phony bank account numbers to use to pay their bills. They ask for social security numbers, bank routing numbers or other personal information in exchange.

Another is the rebate scam. A caller says that a rebate check may be due and requests personal information in order to process the rebate.

Other scams have been around for years.

For example, if you pay your utility bills by mail, don't place the payments in a mailbox until close to pick-up time. Crooks sometimes go into mailboxes, lift the payment envelopes, and alter the checks so that they can cash them.

Unfortunately, there are nearly as many different scams as there are different criminals, say officials at Orange & Rockland utilities.

One of the common ways professional criminals attempt to steal customers’ money is to call a customer’s home or business and say the customer owes money and must pay immediately by pre-paid card or face a shutoff of service.

The callers sometimes point the customer to a store that sells pre-paid cards. The crooks can even make a company telephone number show up on the customer's caller ID.

Once the customer puts money on a pre-paid card and provides the crook with the card number, the crook steals the money.

Utility companies do not accept payment by pre-paid debit cards, by MoneyGram or similar transfers. So, if an imposter demands payment by those methods, you know it’s a crook.

With MoneyGram, thieves may trick a customer into providing money from a bank account, credit card or debit card by going online or to a specified location. The money goes into the thief’s bank account or is available for the thief to pick up in cash.

Never arrange payment or divulge account or personal information, including debit or credit card information, over the phone unless you are certain you are speaking to your utility company. If you are unsure call to check.

Other impostors show up at customers’ homes and businesses claiming to be from O&R. These crooks try to get money by saying the customer is delinquent on bills or try to get inside the home by saying they need to perform work.

Once inside a home, these impostors look for money or property to steal or, in some cases, commit assaults.

If someone comes to your home or business claiming to be from your utility company, ask for identification. If you are still unsure, call the police.

If you are ever contacted, the bottom line is: do not provide personal information to these callers, and contact your local law enforcement agency.

(Hear a podcast on avoiding scams.)

Image via Shutterstock

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