A rumor is circulating across the U.S. claiming President Obama has approved a new stimulus package that will pay for a person’s utilities. Variations have stated it would also pay for student loans. The local Better Business Bureau says this is a scam.
The government is not giving out grant money to pay for utility bills or to pay off student loans, the organization said in a news release. Scammers are primarily contacting consumers via text messages, phone calls and social media platforms and asking for a person’s banking information and Social Security number. After the victim provides those credentials, the scammer issues what seems to be a legitimate routing number to give to the utility company. The utility company accepts the routing number, but might not process the payment right away. Meanwhile, the customer believes his or her payment will be made.
When the utility company tries to process the payment, the number bounces back as not usable or as having insufficient funds. As a result, the utility company starts assessing fees to the consumer.
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. Also, 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 with anyone you do not know unless you initiated the contact and feel confident you are speaking with an honest person.
• If you receive a call from someone claiming to be with your utility company and feel pressured to pay immediately or provide personal information, hang up 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 for information or allow an unknown person into your home,” the local BBB says on its Web site.
For more information on how to avoid scams, or to report a scam, visit www.Chattanooga.bbb.org.
Source: Chattanooga BBB