Utility: How small-business scam works
NEWARK - The state's largest utility warned small businesses Wednesday about a bogus-bill scam that recently duped a Medford restaurateur.
"During the last several days, we've seen an uptick in the number of phone scams being reported," said Greg Dunlap, a representative of Newark-based PSE&G.
He said the scams typically target small-business operators because "they have larger bills than residential customers, but don't have all of the checks and balances to prevent fraud that large business customers typically have."
Medford police this week reported a Stokes Road restaurant, PIC III, lost more than $3,600 to the scam. The company's owner was tricked into making payments — twice — for a bogus bill, police said.
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According to PSE&G, the scam begins when someone pretending to be a utility employee "calls a customer and tells them that without immediate payment via a pre-paid card, their service will be shut off."
Customers are told to buy a debit card, available at area stores, and to call back at a specified number.
"When they call that number, they hear interactive voice response prompts that imitate those they would hear when calling the real PSE&G customer service line," the utility said in a statement.
A fake representative then asks for a number on the card.
"After the scammers have that number, they can take the money from the card — usually within a matter of minutes," the utility said.
The Medford victim met a payment demand for about $1,800 after a call on the morning of Aug. 25. She paid again that afternoon when a scammer called back to say the first transaction had not gone through.
The victim went to police after receiving a third call one day later that directed her to take $2,000 in cash to a "PSE&G payment center" in Clifton, Passaic County.
PSE&G noted it offers multiple payment options "and would never require a customer to use one specific type of payment."
"If you receive a call from anyone demanding immediate payment, do not give them any personal or account information," Dunlap said. "Hang up the phone, and call the number listed on PSE&G's website and bills: 1-800-436-PSEG (7734)."
Jim Walsh, (856) 486-2646; jwalsh@gannettnj.com