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RCMP say utility phone scam now a national concern

ABOVE: Consumer Reporter Tony Tighe’s phone conversation with someone claiming to be from his utility company.

CALGARY – Federal RCMP are warning consumers about a telephone scam active in at least seven provinces, targeting about 2,000 businesses.

In each case the fraudster poses as an energy service provider. Customers are told their power is about to be cut off due to late payments.

They then ask for immediate payment to avoid losing services. The victims are told to call a 1-800 number to pay the overdue amount by credit card or Paypal.

READ MORE: How to recognize and avoid online phishing scams

RCMP say smaller businesses, such as independently owned restaurants have been the primary focus of this crime.

In Toronto, over 100 businesses were targeted.

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Toronto Hydro has received more than 160 alerts. Spokesperson Brian Buchan says their bill collectors would never use such tactics.

“We are not going to call you from a 1-800 number and we also have a very lengthy disconnection notice so we’re not going to give you a short amount of time,” said Buchan. “You’re going to get mailed letters, two … telephone calls to your number, and a hand-delivered notice before anything happens.”

READ MORE: Small businesses across Canada being targeted by phone scam

In Edmonton, at least 40 businesses have received phony calls; two of them paid. In December, EPCOR warned customers that small businesses and restaurants were being targeted by a phone scam. Customers were being told their EPCOR bill was in arrears and they had to pay immediately by calling a 1-800 or buying a prepaid card.

“We simply don’t operate that way,” said Tim le Riche. “Nobody gets cut off with that kind of sudden phone call. It’s just not us.”

“I’m so mad, I can’t sleep,” said Narong Hajibaka, who owns Khao Yum Thai restaurant in Manotick, near Ottawa.

The new business owner was called on Thanksgiving Day, and tricked into buying a prepaid Visa card. He lost $700.

RCMP say victims should report the incident to their energy service provider and the Canadian Anti-Fraud Centre at 1-888-495-8501.

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WATCH BELOW: Mark Carcasole’s report on phoney hydro billers in Toronto.

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