One Stuttgart business and one resident reported the extortion scheme to SPD on Thursday.

“They are saying they are doing criminal investigations, and asking individuals to pay fees,” SPD Criminal Investigation Division Lt. Mark Duke said. “They are spoofing actual law enforcement numbers, including local law enforcement numbers.”

It was reported Thursday from a local resident to SPD that a scammer called from the agencies number, asking her to pay a fine.

The con artists are posing as law enforcement agents targeting consumers as part of an international extortion scheme that has previously surfaced in other parts of the country.

Attorney General Dustin McDaniel's office has received several reports from consumers who have received phone calls from people purporting to be agents of the federal Drug Enforcement Administration. The so-called "agents" threaten consumers with arrest unless the consumers wire money to pay a "fine."

The calls are bogus. Last year, the federal government indicted 11 residents of the Dominican Republic for allegedly perpetrating this type of scheme in the St. Louis area.

Maynard said she has received several phone calls from city residents about a business called Homeserve out of Little Rock trying to sell them water line warranties.

“We have checked with the attorney general’s office, and it is a scam,” she said.

Arkansas homeowners have reported receiving solicitations by mail from a company that touts warranty coverage for the water service lines that connect a home to a utility's main water pipe. The low monthly premiums may sound appealing initially, but a closer look at coverage exclusions shows that homeowners are rarely covered for the common types of problems related to the water lines.

Therefore, McDaniel issued an alert so that Arkansans may know all the facts prior to purchasing water-line warranty coverage.

"Consumers invest in insurance and warranty policies for the peace of mind they receive by knowing they are protected in the event of a problem or emergency," McDaniel said. "This type of warranty product comes with too many stipulations and too little security for the consumer."

In fact, McDaniel said that water-service line coverage may already be included as part of a consumer's existing homeowners' insurance policy. Homeowners should consult their insurance policy or check with their insurance company for details. If such coverage is not already a part of the policy, it is possible that it could be added to the homeowner's policy for about the same or less cost than coverage offered separately.

The mailers to Arkansas residents advertise water-line coverage for a $4.99 monthly fee. The policy provides for up to $3,000 in coverage for two instances per year. That means that, no matter how expensive it is to repair the line — and repairs could well exceed the coverage limit — consumers will still be left footing the bill for any repair over $3,000.

However, many consumers may never get to the point of filing a claim because of the numerous exclusions listed by the company. The coverage is not applicable if the pipes are damaged due to: Freezing and thawing (a common occurrence in Arkansas this time of year); acts of God (Such acts are not defined by the seller); pre-existing conditions (difficult to define for subterranean water pipes); or normal wear and tear.

In addition, the policy excludes payment for repairs due to controllable leaks, also without describing what a controllable leak might be, and for repairs of lines without prior authorization.

With so many vague exclusions, McDaniel said it is almost impossible for a homeowner to determine what is covered.