Phone scammers have used a number of tactics to get unassuming people to hand over their money, but one con has police and a Long Island utility company especially concerned.
Some scammers have been claiming they are employees of a utility company like PSEG Long Island, and then tell a person their bill is in arrears. They threaten to turn off heat or electricity if they do not receive hundreds or even thousands of dollars, often in the form of a gift card instead of the normal check or direct deposit.
“The elderly might not say anything because they may be embarrassed.”
— Stuart Cameron
Such is what happened to Setauket resident Candy Maeder, who said she was called March 5 by a person claiming to be from the utility company. The man on the phone said Maeder was late on her bills and her service would be shut off in a matter of hours if she didn’t give them hundreds of dollars in cash. She said they would not even take a debit card over the phone.
“I fought with them back and forth,” the Setauket resident said. “At first, I really believed it was them.”
After hanging up the phone, and after talking with her boyfriend and also her electrician, she came to the conclusion it had been a scam.
That day, she called PSEGLI and the police, but Maeder’s experience is all too common in the modern day — almost textbook with what others have experienced. Suffolk County police has records of the number of reports of phone scams received over the past several years. Records show the frequency of the PSEGLI scam has increased. In 2018, there were 56 reported cases of the scam throughout Suffolk. In 2019, police received 76 reports of scammers claiming they were PSEGLI, where people did not give them money. An additional 55 actually resulted in the scammers stealing money from victims for a total of 131. In January and February of this year, police have received reports of 30 scams so far.
Suffolk County Police Chief Stuart Cameron said scammers are always coming up with novel frauds, but the PSEGLI scam has been on the rise. Like many scams, it particularly targets the most vulnerable residents, such as the elderly, who particularly can’t afford to be out several thousand dollars as some scammers demand.
“The elderly might not say anything because they may be embarrassed,” he said. “Scammers play on that type of fear and embarrassment to exploit money from those residents who are probably in the worst position to lose money like this.”
New Jersey-based PSEG has been tracking this scam even before taking over the electric infrastructure portion of LIPA’s business from National Grid in 2014. Robert Vessichelli, the senior security investigator for PSEGLI, said the actual number of people falling for the scam has decreased over the years. In 2019 the utility company received notice of 6,574 scams for the whole of Long Island, where 305 of those fell victim to the scammers. The con artists often ask for as little as a few hundred dollars and up to several thousand.
“The best way to combat these scams is by educating the public,” Vessichelli said. “When I learn people haven’t heard of the scam, it kind of concerns us.”
Tracking these individuals is difficult, even when scammers are calling locally. While the police chief said they have made some arrests, the suspects often do a process to their phone numbers called “spoofing,” making their caller ID on answering machines appear as a completely separate number, even making it out to look like it was coming from PSEGLI or even police.
The Long Island utility company has been participating in a national campaign to promote awareness of phone scams. Utilities United Against Scams, a U.S. and Canadian consortium of utility companies, ran the campaign during National Consumer Protection Week March 1-7 to promote scam awareness. Vessichelli said the consortium uses its influence to block the numbers of callers they confirm are from scammers, but of course the perpetrators will simply move on to use a different phone number. Sometimes, these calls come from people outside the U.S.
The scam comes in multiple forms. While often it’s a person on the phone proclaiming a bill is in arrears, con artists also conduct phishing schemes by telling people they are owed money from overpayment and ask for bank account information. They may also call saying they need a deposit for a new meter, though PSEGLI does not charge a deposit for such a thing.
“At first, I really believed it was them.”
— Candy Maeder
One of the more frightening tactics is when charlatans show up in person at people’s houses claiming they are utility employees. When such people come to the door, Vessichelli said its best to call PSEGLI to confirm those are legitimate employees. The security expert suggested if they show ID, ask to take a picture for you to send to the utility to confirm identities.
Warning signs are often readily apparent. If a resident receives a cold call without any prior email or snail mail notifications, that’s usually a bad sign. Another sure sign is if they ask for any nontraditional form of payment, such as asking you to buy gift cards which the person then asks for those to be scratched off, or a payment of cash by drop off or in person.
These are points often seen across all sorts of scams, so police’s general advice is to not relay any kind of personal information, such as your name or the name of family members or where you live. Scammers often take private information off social media such as Facebook, so if one starts hearing familiar names, don’t take it as a sign they are who they say they are.
PSEGLI workers are required to wear photo IDs, so in meeting one of these scammers in person, a surefire sign is if they cannot produce such an identification.
Cameron said if one suspects a caller might be a scam, then one should hang up, get the number where called from and phone PSEGLI at 800-490-0025 or the police at 631-852-2677. For more information, visit www.psegliny.com/scam and www.utilitiesunited.org.