Consumers Alerted by FTC Regarding Deceptive Offers of Reduced Monthly Payments
Fool's Gold: How to Dodge Discounted Services Scams
Wশhip upping the old saying: "if it glimmers like gold, it's probably fool's gold." Beware of slick scams that promise discounts on services ranging from utilities to health insurance, only to leave you empty-handed - and out of cash. The Federal Trade Commission (FTC) and the FBI have issued warnings to consumers about these schemes that share a common thread: too-good-to-be-true promises resulting in lost money. Here's the lowdown on these scams and how to evade them.
Spotting the Swindle
One flavor of this scam brews with a robocall from a shady operator posing as a utility company (like AT&T or Comcast Xfinity), hawking phone, TV, or internet services. As the FTC alert details, the con artist dangles a 40 to 50% discount on future bills, bundles, or product purchases, but only if you act fast and foot the bill up front. They'll ask you to purchase a gift card and divulge the number - and they may demand your utility account information, as well.
A similar scheme, according to the FBI's Internet Crime Complaint Center, involves discounted medical insurance. In this ruse, tricksters make unwelcome calls, texts, or emails, pretending to represent legitimate health insurance providers. They may try to strong-arm victims into signing up for a new plan at a knock-down price that supposedly expires shortly or guarantee care that's allegedly free of charge. Once foolish victims have purchased a policy, they're left high and dry, unable to rescind the contract, obtain a refund, or use the purported benefits when they find themselves saddled with unexpectedly hefty medical or dental bills.
Shielding Your Wallet
As with many scams, there are some red flags that indicate the allure of discounted services is fake, such as a pushy stranger hitting you up out of the blue trying to sell you something, a sense of urgency to act pronto or lose your chance, and pressure to cough up dough on the spot - especially by way of a gift card.
To avoid becoming ensnared, don't rush headlong into any decisions. Just hang up, and reach out to the company that's allegedly peddling the deal to confirm whether it truly exists. Only use phone numbers and websites you look up independently - do not click links or call numbers you receive in messages. Under no circumstances pay anything up front.
If you're targeted for discounted medical insurance, investigate the company using your state insurance commissioner and the Better Business Bureau to assess whether it's legit and authorized to operate in your state. Make sure your healthcare providers accept the plan, and comb through any policy documentation carefully before putting pen to paper. If the plan refuses to materialize, it's likely a scam.
Other Precautions
- Solar Panel and Energy Scams: Steer clear of aggressive sales tactics for solar panel or energy promotions, and ensure all agreements are put in writing.
- Face Fraud: Exercise caution when posting identifying documents online and safeguard them to stymie face fraud.
By following these tips, you can significantly reduce your chances of being snared by discounted services scams.
- Be aware that robocalls pretending to be utility companies, like Comcast, may offer discounted services with upfront payments, but are often scams that aim to steal your money.
- Be wary of unsolicited calls, texts, or emails offering discounted medical insurance, as these scams may leave you with invalid policies and unexpected medical bills.
- Spot red flags such as pushy salespersons, urgent requests for action, and demands for immediate payment, especially through gift cards.
- Protect yourself by researching the company and confirming the deal with the company directly before committing, and never pay for services upfront.
- Stay vigilant against other scams like solar panel and energy promotions with aggressive sales tactics, and be cautious when posting identifying documents online to prevent face fraud.
