Federal Trade Commission Warns Consumers About Monthly Rebate Bill Scams
Scams often live up to the old adage: “if it sounds too good to be true, it probably is.” The Federal Trade Commission (FTC) and the FBI are warning consumers about several similar scams that involve promising benefits—from utilities to health insurance—and end with the scammers stealing your money and leaving you with nothing to show for it.
Here’s how scammers scam people and how to protect yourself.
How service discount scams work
One type of scam starts with a robocall from someone claiming to be from a utility company (such as AT&T or Comcast Xfinity) that offers phone, television, or Internet service. As described in the FTC alert , the scammer promises a 40 to 50% discount on future bills, packages, or product purchases, but only if you act quickly and pay upfront. They will ask you to purchase a gift card and provide them with a number, and may also ask for your utility account information.
A news release from the FBI’s Internet Crime Complaint Center describes a similar scam involving a health insurance discount. In this scheme, scammers approach you through unsolicited calls, text messages or emails and pretend to represent legitimate health insurance providers. They may pressure targeted individuals to sign up for a new discounted plan that is only available for a limited time, or promise free services. Once victims purchase a plan, they cannot cancel it, get a refund, or take advantage of supposed benefits after receiving expensive medical or dental bills that they thought were covered.
How to protect yourself
As with many scams, there are several telltale signs that a promise of discounted services is fake, including a stranger contacting you out of the blue trying to sell you something, a sense of urgency to act now or lose the opportunity, and a demand to pay immediately (especially with a gift card).
To avoid becoming a victim, do not make hasty decisions. End the call and contact the company that is supposedly offering the deal to confirm that it is real. Only use phone numbers and websites that you search for directly—don’t click on links or call back numbers that are sent to you in messages. Never pay anything in advance.
If you want discounted health insurance, check with your state’s insurance commissioner and the Better Business Bureau to see if it is reputable and licensed in your state. Confirm that your providers accept the plan and read all policy documents carefully before signing them. If you don’t receive any documents, it’s almost certainly a scam.