PUD scam targets local business

They caught him at around 3 p.m. on a Saturday, just an hour before he was scheduled to open. A caller, claiming to be with the Snohomish County Public Utility District (PUD), informed Adam's Northwest Bistro Owner and Chef Adam Hoffman that due to nonpayment, a truck would arrive at 4 p.m. to shut his power off.

Hoffman, who opens his Monroe restaurant at 4 p.m., was preparing for a busy night in the kitchen. When he heard that his power would be shut off, he was instantly propelled into panic mode.

"He knew everything about the PUD bill, to the penny,GÇ¥ Hoffman said. "He kept saying "The truck is going to come at 4 o'clock.GÇ¥

Energy-bill scams have become so prevalent that the Snohomish County PUD has a warning posted directly on its website. Thieves are using the telephone to target utility customers, claiming that their bills are delinquent and that their power will be shut off unless they pay the past-due amount immediately.

The scammers ask victims to use a form of payment that transfers funds instantaneously, such as Green Dot Prepaid Money Cards or, in Hoffman's case, something known as a Reload Pack. The packs are typically purchased at grocery stores and other retail establishments, and must be paid for with cash.

Once purchased, the Reload Number on the back of the pack gives the other party immediate access to the funds.

Hoffman knows from firsthand experience that the callers can be quite convincing. They were armed with data about Hoffman and his restaurant, and seemed to know exactly when he would be most vulnerable. They instructed Hoffman to purchase the Reload Pack at the Monroe Safeway, and informed him that he would need to purchase two, since the Reload Packs max out at $500 and they claimed he needed to pay $900 to keep his power on.

The caller, calling from a South Carolina area code, told Hoffman to call him back with the 10-digit Reload Number and then, and only then, would he call off the truck. He claimed that Hoffman had been sent several reminder notifications, warning him that his payment was past due. After a heated exchange with the caller, Hoffman felt that he had no choice but to pay the money.

Hoffman tried to get through to his accountant, to find out why the payment was never sent, but she was unavailable.

"He's thoroughly convinced me,GÇ¥ Hoffman said. "It's Saturday, we're going to have 150 people in here, [and] it's fully staffed. So I go flying to the bank, just furious.GÇ¥

When he arrived at the bank, they were in the process of locking up for the day. Frantic, Hoffman told them that he needed $900 immediately, or he would be in a heap of trouble. Fortunately, once he explained to the bank employees why he needed the money, one of them spoke up right away, informing him that it was a scam.

"I'm in panic mode and I said, "The PUD's going to shut my power off,'GÇ¥ Hoffman remembered. "She goes, "It's a scam, I promise you.'GÇ¥

Initially, Hoffman had a difficult time believing her, the caller had been so convincing. But once he called the PUD's direct line, he was greeted with a warning against utility bill scams. In the end, the timing of the initial phone call, which had been so inopportune, ended up saving him $900, because had the bank not been in the process of closing, he may not have explained to them why he needed the money.

In retrospect, Hoffman realized that the phone call was questionable, but the gravity of the situation negatively impacted his mindset.

"I had all these things kind of working against me, and of course, once I went into panic mode, I lost all common sense,GÇ¥ Hoffman said.

The PUD does not collect outstanding debt via prepaid money cards or Reload Packs. They also warn that they never call customers requesting that credit card information be given over the phone. If a customer receives a phone call that seems questionable, they should hang up immediately and call the PUD back using their direct line.

To learn more about utility scams, visit the PUD website www.snopud.com/AboutUs/scams.ashx?p=1786.