New Law Should Help Protect New Yorkers From Common Scam

PEARL RIVER, NY— New Yorkers will be more protected from gift card scams under a new consumer protection law, officials with Orange and Rockland Utilities said Wednesday.

New York State has adopted a new law requiring all businesses selling gift cards to display a notice at or near gift cards or gift certificates are displayed or sold to alert consumers about gift card fraud.

Requesting gift cards as payment has become increasingly popular with thieves, as funds are nearly impossible to trace.

An AARP survey in 2022 found 73 million adults have experienced some form of gift card scam.

Nearly 65,000 consumers filed a complaint related to gift card scams last year, equating to a total loss of $228.3 million, according to the Federal Trade Commission.

The typical utility scam scheme goes this way: Thieves posing as utility company employees call unsuspecting customers and threaten them with the immediate shut off of their electric service if they don’t pay their bills with Green Dot or other prepaid debit cards.

This new law requiring warning signage where gift cards are displayed or sold will help to reduce the success rate of these thieves and protect consumers’ hard-earned money, O&R officials said in an announcement.

Don't believe any thief who makes a shutoff threat:

• NO DEBIT CARDS - Con Ed, O&R and other utility companies do not accept bill payment for electric and gas utility bills by Green Dot or any other prepaid debit cards.
• NO IMMEDIATE SHUTOFF - Disconnecting electric or gas service for non-payment of bills involves a multi-step process — including written communications from the utility company to the customer over a period of several days, or even weeks — not hours. That process is regulated by the New York State Public Service Commission.

If someone calls you and threatens to shut off your electric or gas service that day if not immediately paid through a prepaid debit card, remember these five tips:

1. Hang Up – Disengage so you’re not further subjected to the thief’s high-pressure “sales pitch.”
2. Text Scam – After you hang up on them, the more aggressive thieves will try to repeat their shutoff threat by texting you. Ignore the threat. They are thieves.
3. Don’t Hit “REDIAL” – The caller ID screen on your phone for the thief’s call may read like it's your utility company, but that’s a hi-tech fake. Do not redial, and don’t call the number that the caller gives you to call them back. That will reconnect you to the thief.
4. Fast Track - If you are unsure about whether you have an overdue balance, the fastest way to find out is to log onto your account or call the company.
5. Check the ID - If you are contacted by someone in person or on the phone who says they represent your utility company and you wish to verify their identity, either ask for their photo ID card, if they are at the door, or get a call-back number if they are on the phone. Then make an independent call to your utility company to check.

Remember, if you are feeling threatened or otherwise uncomfortable about your security during the exchange, immediately report the incident to your local police department at 911, O&R officials said.

The Federal Trade Commission recommends if someone asks you to pay them with gift cards:

• Report it to the FTC at ReportFraud.ftc.gov. Report it even if you didn’t pay. Your report helps law enforcement stop scams.
• Report it to your state attorney general.
• If you lost money, also report it to local law enforcement. A police report may help when you deal with the card issuer.