FTC warning: Be careful how you pay bills online

The next time you pay a medical, utility or other bill online — think twice. The Federal Trade Commission said it may be an impersonator tricking you into paying them.

It said doxo, which is a third-party vendor, did that to many people who used the website.

The FTC sued the company for misleading consumers by pretending to be an official payment site for big-name companies.

It alleged doxo used online ads through search engines appearing to come from those companies.

The FTC said, in some cases, the company never received the payment and consumers paid millions in unnecessary fees.

The Federal Trade Commission declined to comment on the case because of pending litigation against DOXO.

In a statement to WTOP, a spokesperson for doxo released the following:

For over 14 years, doxo has remained committed to taking the necessary steps to comply with all regulations and exceed market standards for ensuring consumers are protected and empowered throughout the bill pay experience. To date, we have assisted over 10 million people in safely and efficiently paying their bills, eliminating extraneous costs, and improving and protecting their financial health. The current U.S. Federal Trade Commission investigation is inaccurate, and unjust, pushing forth a narrative that is a monumental step backward from the objective of reducing bill pay complexity and costs. The U.S. Federal Trade Commission’s complaint indicates a fundamental misunderstanding of the existing bill-pay market and the structural inefficiencies that almost always work against consumers. doxo is committed to fighting on behalf of all consumers and billers who deserve a better bill pay experience, and we look forward to seeing their interests prevail.

You can also find doxo’s news release online.

The FTC wants to educate the public about the following red flags:

• If someone contacts consumers unexpectedly and they ask for information and money
• If the person contacting you creates a sense of urgency and wants you to act fast, so you don’t have time to think about it or talk it over with someone that you trust

Larissa Bungo, a senior attorney with the FTC’s business and education division, also said scammers will give you a specific way to pay or send money. To steer clear of these traps, she said consumers should do the following:

• Don’t give money or information to someone who contacts you unexpectedly
• Don’t click on links of unexpected emails or text messages, and
• Don’t give information to someone who calls you or contacts you on social media asking for payment and personal information.

Bungo said “legitimate business and government agencies won’t do that.”

If consumers are looking to pay a bill online, know that search results might not get you to the right place. Instead, check the bill to find the online payment site. And, if possible, use a credit card. Credit cards offer the most protection against fraud, including the right to dispute charges if there are any problems.