As if everyday life is not stressful enough, New Jerseyans also must be on the lookout for a wide array of sophisticated and predatory scams often targeting vulnerable residents around the state. Over the last few months, officials have warned about a litany of different schemes, everything from baby formula fraud and price gouging to gift card scams to crypto and NFT fraud and, perhaps most baneful, scammers pretending to be electric companies demanding payment to get customers’ financial information during the peak summer months.
Platkin
State officials have taken note. In late April, acting Attorney General Matthew Platkin issued a consumer alert on gift card scams along with guidelines for retailers to train their employees on signs that a consumer is falling victim to that form of fraud. “The best tool we have to fight gift card scammers is widespread awareness of how they operate and how to stop them in their tracks,” Platkin said.
Under the Stop the Fraud Bill, which Gov. Phil Murphy signed into law in January, employees must receive training on how to identify and respond to gift card fraud by Aug. 1 or within 45 days of beginning employment. The training uses the “if you see something, say something approach,” teaching employees to recognize signs that someone may be victim of gift card fraud, such as buying multiple gift cards with high dollar values or immediately taking pictures of the gift cards’ serial numbers.
Some common gift card fraud schemes:
- Government agency scams: Someone claiming to be from the government demands payment in the form of gift cards to avoid arrest
- Refund scams: A caller offers a refund, credits money in excess of the refund, and asks to receive the additional money in gift cards
- Grandparent scams: Someone pretending to call on behalf of a relative or friend in distress and asking for money to assist them
- Freebies and sweepstakes scams: A gift card is required to pay a processing fee to receive a prize or free merchandise
- Utility scams: Utility company imposters claiming service will be cut off if payment is not received right away
Some schemes may also involve “spoofing,” which allows scammers to fake caller ID information and email addresses to hide their true identity. While some scammers may ask for a physical gift card, others may just ask for the number and security code, which allows them to spend the gift card without physically having it. Officials remind people that no legitimate business or government agency will ever ask for payment exclusively in the form of gift cards.
“It takes a village to fight fraud, and that is why we are enlisting everyone’s help,” said Howard Pine, former acting director of the Division of Consumer Affairs. “By issuing these guidelines we aim to cripple the efforts of scammers who often use fear to intimidate unsuspecting consumers into buying gift cards to avoid utility service interruptions or help a friend or relative in need.”
And when it comes to utility scams, businesses and customers are urged to be vigilant beyond even the gift card schemes. As the summer season kicked off, Atlantic City Electric issued a reminder to its customers that scammers were working harder than ever to take advantage of them in new ways.
While utility scams occur throughout the year, companies see an uptick in reports throughout the warm summer months and cold winter months when customers are more reliant on energy to cool and heat their homes. Scammers take advantage of that fact, as well as trying to prey on families and businesses who may be struggling from any of the ongoing financial pain from the pandemic.
“We’re really warning customers to be vigilant and know that some of these schemes, some of these scammers have become very sophisticated in their approach,” Candice Womer, an Atlantic City Electric spokesperson, told NJBIZ. “They’re definitely looking to play on people’s emotions. So, they played off the pandemic. They are looking for the more vulnerable. They’re looking for people who they think might fall for this.”
Some of the common schemes include the aforementioned “spoofing” of a company’s phone number to scare a customer into payment, as well as imposters posing as Atlantic City Electric employees to gain entry into a customer’s home to steal belongings.
Womer noted that the company would never send its employees to a home or business to demand payment, ask for immediate payment with a prepaid cash card, or ask for their account number or other personal information, such as a driver’s license number. And she pointed out that all Atlantic City Electric employees wear a uniform with the company logo and employee’s name, along with a company ID badge.
She also said Atlantic City Electric will never call a customer to ask for their account number, any personal information, or to make a direct payment with a prepaid cash card. “That’s a big red flag. Atlantic City will never call and ask for payment on-demand or request you to make a payment over the phone,” said Womer. “If you have MyAccount, you can go and confirm your real-time balance right there and just confirm if the information being told to you is accurate.
Atlantic City Electric also urged commercial customers to be on alert for any potential schemes, often using email to impersonate companies, to deceive businesses into providing their financial information.
“These scammers have become really sophisticated in their approaches,” said Womer. “It’s not as obvious anymore. But, even though, it’s not as obvious, there are still things to look for to help prevent it.”
Womer urges customers to visit atlanticcityelectric.com for more resources and tips on how to identify and combat scammers. “The safety of customers, employees and contractors is Atlantic City Electric’s top priority, and we hope the provided steps for our customers to take will give them the necessary tools to avoid scams or know what to do should they fall victim,” Womer said.
After Gov. Phil Murphy signed an Executive Order in May to address the scarcity of the product, other state officials issued a warning about price gouging and potential fraud concerning the sale of baby formula. – UNSPLASH
And as scammers try to prey on hardships like the pandemic or circumstances such as the warm and cold weather, another recent example of capitalizing on such an adversity is the baby formula shortage.
After Murphy signed an Executive Order in May to address the scarcity of the product, the attorney general and Division of Consumer Affairs issued a warning about price gouging and potential fraud concerning the sale of baby formula.
“The current baby formula shortage may have scammers and unscrupulous vendors coming out of the woodwork to take advantage of parents at a vulnerable time,” Platkin said. “We are putting merchants on notice that we stand ready to take action and hold accountable those who exploit any crisis for financial gain.”
The Division of Consumer Affairs said that it is aware of reports of online scams, monitoring instances of them affecting New Jersey consumers and asked for the public’s help in identifying other schemes.
“As we continue to review reports of alleged price gouging and other questionable tactics, we ask consumers to help us by reporting any excessive prices and scams they observe while shopping for baby formula,” said Cari Fais, acting director of the Division of Consumer Affairs. “The Division is prepared to take action against violators, but when it comes to consumer protection, New Jerseyans can also play an active role in putting a stop to price gouging and fraud.
