Scams targeting users of mobile payment apps such as Cash App, QuickPay, Venmo and Zelle are surging, the Better Business Bureau and Illinois utility Commonwealth Edison warned Thursday (Feb. 24).
ComEd customers alone reported being scammed out of at least $27,000 in January 2022, the utility and consumer protection group reported. The sum was more than 20 times that stolen during payment app fraud from the same customer population in January 2021, according to the warning.
“The ease of using mobile pay apps has made the process of scamming customers more efficient for imposters,” Melissa Washington, ComEd’s chief customer officer and senior vice president of customer operations, said in a prepared statement. “As scammers alter their schemes, ComEd will be there to alert customers of the latest attempts to con them out of money and personal information.”
Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois, said in a statement: “Scammers keep adding new tools like payment apps to take advantage of unsuspecting victims. Along with impersonating utility representatives, there are fake calls and emails from the IRS, Social Security, and other government officials demanding immediate payments.
“A lot of scams the BBB sees are based on unconventional payment methods. That is the tip-off to the rip-off. Never give out personal information or send money until you have contacted the company directly to check your account status.”
The warning states that scammers first contact ComEd customers, usually by phone though sometimes by text or email, and demand payment of a certain amount to prevent service shutoff. The fraudster then instructs the victim to satisfy the bill with a mobile payment app.
ComEd is owned by Chicago-based Exelon Corp. and reports having 10 million electricity and natural gas customers.
Last month, authorities in Texas warned residents of QR code sticker-based parking meter scams, which were intended to intercept payments and steal credit card information.
See also: Scammers Using Fake QR Codes on Parking Meters to Divert Payments
The QR code stickers, first identified in San Antonio, Texas, directed users to fraudulent pay portals that have since been taken down.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More