What happens to people who fell for the Obama scam?

Answer 1

Consumers throughout northeast Ohio, who owe utility bills, think they hit the jackpot. A rumor is circulating that President Barack Obama approved $1,000 to pay off bills. It started with phone calls and is now circulating through word of mouth. However, this is not a legitimate offer. There isn't free money to pay off your bills, so don't fall for this scam.

NewsChannel5 spoke with several people who fell for the scam. Times are tough for many people so the thought of free money lured them in.

"When the President got elected he gave everyone a stimulus check and I think everyone is believing it because of that first check everybody got," Nancy Rutti said. "Like everybody else I have bills to pay too, and if it was true I would be doing it. I called you guys instead to find out if it's true or not."

Rutti said she heard about the scam from a friend who gave her a routing number to use when she paid her bills on the phone by check. To pay by check via phone you also need an account number. People we spoke to said they were told to use the numbers on the back of their social security card.

The Social Security Administration said those numbers are security features used to prevent counterfeiting of social security cards.

People believed this scam because some northeast Ohio utility companies approved the payments and turned back on lights and reduced bills to $0. Consumers were even given confirmation codes that the payment went through. One woman told us she paid her $400 cable bill, and the cable company told her it would turn back on her TV this week.

"I know someone who called that had their lights out. Their lights are on today," Rutti explained.

The payments will eventually bounce when the utilities realize the account number is bogus. The routing number is legitimate, but GE Capital is investigating and working with authorities to put an end to this rip-off.

It's been making the rounds since spring, hitting various parts of the country. Atmos Energy, based in Dallas, issued a warning to consumers in mid May. The Better Business Bureau is also warning consumers, noting scammers have even visited people in person to get them to believe this rip-off.

There is a risk for identity theft with this utility rip-off, plus your bills will be denied and you could be facing more fees for using a fraudulent account.

The routing number belongs to GE Capital. The bank reminds consumers to never give social security numbers to someone you don't know. If something sounds too good to be true, it probably is.

One Cleveland woman who wanted to believe this scam said through tears that her hopes were shattered knowing her bills now aren't paid.

By Niharika Singh <3