Phone Scammers Use Mobile Payment Apps for Fraud

Southern California Edison does not accept payment from third-party apps and never demands immediate payment over the phone.
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Stories : Safety

Phone Scammers Use Mobile Payment Apps for Fraud

Southern California Edison does not accept payment from third-party apps and never demands immediate payment over the phone.

Mobile payment services and apps such as Zelle, MoneyPak and others offer users convenience and ease of use. They are also quickly becoming a favorite tool among phone scammers posing as Southern California Edison employees — even though SCE does not accept bill payments from third-party apps and some apps are using pop-up warnings.

Luz DeLeon, a fourth-grade teacher from Huntington Park, was leading her class via Zoom due to COVID-19 restrictions when she got a call from impostors posing as SCE. There was a problem with her meter, they said, and her power would be shut off in 30 minutes — unless she paid a deposit immediately using Zelle.

“I was panicking,” said DeLeon. “I said, ‘You can’t cut me off! What do I need to do?’” Weeks earlier, her internet connection failed while she was giving an exam and she did not want another disruption.

DeLeon was transferred to a Spanish-speaking woman who assured her she would get the money refunded. But a truck was already on its way, they said, so DeLeon had to send the money right then, directly to a supposed “SCE manager.” They instructed her step-by-step on how to use Zelle until she had sent them $495.

The rate of phone scams reported to SCE each month is more than 30% higher this year (about 1,700) compared to the same period last year (about 1,300).
The rate of phone scams reported to SCE each month is more than 30% higher this year (about 1,700) compared to the same period last year (about 1,300).

Only later, her sister told her, “I think you’ve been scammed.” DeLeon then contacted SCE and confirmed that the call was from impostors.

COVID-19 safety guidelines continue to keep many Southern Californians home during daytime hours, creating more opportunities for phone scammers. Refunds received during tax season, and this year’s stimulus checks from the American Rescue Plan, may also be driving increased phone scam activity.

The rate of phone scams reported to SCE each month is more than 30% higher this year (about 1,700) compared to the same period last year (about 1,300). So far this year, SCE customers report being scammed out of more than $264,000, with about 34% (about $88,000) lost using mobile payment apps.

These payment services and apps “should only be used to send money to someone you know and trust,” said Meghan Fintland, director of Influencer Relations at Early Warning Services, the network operator for Zelle. “They are the same as putting cash in an envelope and dropping it in a mailbox.”

The rate of phone scams reported to SCE each month is more than 30% higher this year (about 1,700) compared to the same period last year (about 1,300). So far this year, SCE customers report being scammed out of more than $264,000, with about 34% (about $88,000) lost using mobile payment apps.

Zelle uses pop-up warnings during transactions to confirm whether users know the recipient. Zelle also promotes its Pay It Safe public education campaign on its website and in this video.

“Anytime someone says, ‘You need to pay right now,’ that’s a tipoff,” said Darryl Turner of Murrieta. He and his wife Lynette get “several various scam calls each week; that happens when you get up in years.” They are both over 70.

A few weeks after actual SCE technicians upgraded their meter, a scammer called them claiming to be from SCE and said the Turners owed $495 for a new meter or their service would be interrupted. “The caller wanted us to pay immediately by Zelle,” Turner said. Realizing this was a scam, they declined and reported the call to SCE.

Customers targeted by a utility bill scam should confirm their payment status or report the scam attempt by calling SCE at 1-800-655-4555. They can also email SCE at csinfogov@sce.com or complete SCE’s online fraud form.

G20-216 Scam Alert Flyer