Update: SMECO Warns Customers about Green Dot Payment Scam

Southern Maryland Electric Cooperative (SMECO) is warning its customer-members about a scam involving prepaid Green Dot Visa and MasterCard debit cards. Callers claiming to represent SMECO have been contacting customers and threatening to disconnect their electric service. The caller tells SMECO customers to make a payment by purchasing a Green Dot debit card. They may even tell customers to purchase the card at a local CVS store. Customers are then told to call another phone number; when the customer gives the card information over the phone, the scam artist cashes in the monetary value of the Green Dot card.

Customers who have received a phone call from an unauthorized source may call their local law enforcement agency or the Federal Trade Commission at 1-877-FTC-HELP. According to Tom Dennison, SMECO’s government and public affairs director, “SMECO has received a number of phone calls from customers who have been targeted by this scam. They said that ‘SMECO’ appeared on their phone’s caller ID, so they thought the call was legitimate.”        

SMECO has a set routine for collecting payments from customers. 

  • SMECO only calls customers who owe a past due balance.
  • SMECO usually uses an automated phone system with a recorded message; rarely will SMECO employees make personal “collection” phone calls. 
  • Collection calls are made about 10 days before service is to be terminated.
  • SMECO does not require payment at the time of the call.
  • SMECO does not make collection calls or terminate service on weekends or holidays.
  • If service is going to be terminated, a SMECO collector will knock on the customer’s door before turning off service. 
  • SMECO collectors will accept credit card payments, checks, or money orders, but they do not accept cash.

Dennison added, “We don’t want our customers to lose their hard-earned money to a scam artist. If customers receive a phone call, and they are unsure about whether or not it is legitimate, they should hang up and call SMECO at 1-888-440-3311, any time, any day.  Customers should never provide financial or account information to unauthorized callers.” 

SMECO is a customer-owned electric cooperative providing electricity to more than 154,000 services in Charles County, St. Mary’s County, southern Prince George’s County, and all but the northeast portion of Calvert County.  Co-ops are distinctly different from investor-owned utilities because co-ops are owned by their customers, and customer-members elect the men and women who serve on the Board of Directors. 

Co-ops also issue capital credits to their customer-members.  What are capital credits?  They are the member’s share of the co-op’s margins, based on how much electricity the member purchased and the rate at which the account was billed.  SMECO’s margins—revenue less expenses—are used as working capital for new construction and system improvements.  When SMECO’s Board of Directors determines that a percentage of the capital credits can be distributed to members through a general refund, capital credits will be issued by check or credited to members’ electric bills.

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Southern Maryland Electric Cooperati