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Scam Targets Low-Income Energy Customers

CHICAGO (CBS)--A scam letter targeting low-income energy customers is popping up in thousands of mailboxes across the Chicago area.

The letters claim to be from the Community and Economic Development Association, or CEDA, a non-profit organization that assists low-income homeowners with their energy costs.

The Bobo family says a letter from CEDA recently arrived in the mail notifying them of a discount they were eligible to receive on their energy bill.

Darrick Bobo called the 800-number on the letter and was surprised to hear a voice recording for a sweepstakes entry and other unrelated offers.

"It's a legitimate letter," Bobo said. "It's on their letterhead. It's their envelope."

Shocked, dismayed, and surprised is how Bobo said he felt when he realized the phone number was probably linked to a scam.

"What happens if you get a senior citizen who freely gives out credit card information, someone who doesn't have someone to watch their back?" Bobo said.

We took that question and the letter to the President of CEDA, Harold Rice, and had him call the number.

Rice said he was stunned to learn the 800-number reached the wrong number.

It was unclear why the letters were printed on CEDA letterhead.

"That part I don't know," Rice said. "It could have come from a terminated employee or mail that was not shredded."

More than 130,000 homeowners are CEDA clients, and Rice fears others like Mrs. Bobo may be at risk.

"It damages our brand, and it misrepresents what our mission is. So we have to stop that," Rice said.

Rice is now launching a campaign to warn homeowners about this scam.

More changes from CEDA are expected. The agency said it will discontinue the use of official letterhead listing the CEDA Board of Directors--some of who are no longer on the board.

Paper notices will also be watermarked in the future, making it more difficult to duplicate the original.

 

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