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Utility scam sweeps nation, causes concern

Thousands are falling victim to a scam in which they are told an Obama administration program will pay up to $1,000 toward utility bills.

Published: July 13, 2012 Comment on this article

MADISON, Wis. — As much as President Barack Obama wants your vote, he’s not actually offering to pay your monthly bills.

But thousands of Americans have been persuaded otherwise, falling victim to a fast-moving scam that claims to be part of an Obama administration program to help pay utility bills in the midst of a scorching summer.

photo - Taneisha Morris, 33, of Detroit, who was scammed on paying a utility and satellite television invoice is shown in Detroit, Thursday, July 12, 2012. A national scam touting a new federal program from President Barack Obama is taking advantage of electric utility customers in several states. The scammers are telling utility customers that President Obama or the federal government will provide credits of up to $1,000 to help offset utility costs. Around the country, the scam has also been spread through text messages, social media and fliers. The scam artists are asking for customers to provide credit card and Social Security numbers. (AP Photo/Paul Sancya) ORG XMIT: MIPS101

Taneisha Morris, 33, of Detroit, who was scammed on paying a utility and satellite television invoice is shown in Detroit, Thursday, July 12, 2012. A national scam touting a new federal program from President Barack Obama is taking advantage of electric utility customers in several states. The scammers are telling utility customers that President Obama or the federal government will provide credits of up to $1,000 to help offset utility costs. Around the country, the scam has also been spread through text messages, social media and fliers. The scam artists are asking for customers to provide credit card and Social Security numbers. (AP Photo/Paul Sancya) ORG XMIT: MIPS101

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The scheme spread quickly across the nation in recent weeks with help from victims who unwittingly shared it on social media sites before realizing they had been conned out of personal information such as Social Security, credit card and checking account numbers.

Here’s how it works: Victims typically receive an automated phone call informing them of the nonexistent utility program that will supposedly pay up to $1,000.

Victims are told that all they have to do is provide their personal information. In exchange, they are given a bank routing number and checking account number to provide their utility company.

Only when the payments are processed hours or days later is the fake account caught.

But by then, victims have told friends about the offer, posted it online and, most important, turned over personal information that could allow con artists to dip into their bank accounts or steal their identity.