How to Recognize (and Avoid) Utility Scams
As if you don’t have enough scams and identity theft to worry about , scammers are increasingly targeting an important part of your everyday comfort: your utilities. Utility scams can be especially effective during extreme weather conditions, such as heat waves or winter storms, when you do everything to keep the power on and the water flowing. Here’s how to spot a scammer and avoid losing money on his game.
How utility fraud works
Scammers use several methods to target utility customers, almost all of which involve threatening to shut off your utilities if you don’t pay quickly. The Federal Trade Commission (FTC) is warning consumers about a scam in which you receive a barcode via text or email, supposedly from your utility company, to pay your bill at retailers such as Walgreens, CVS or Walmart. Pacific Gas and Electric (PG&E) customers in California have been alerted to a phone scam in which callers threaten to cut off your utilities unless you send immediate payment using a prepaid debit card, gift card, cryptocurrency, or instant digital platform such as Zelle or Venmo. Texas-based Austin Energy received reports that scammers would call in knowing specific details of a customer’s account, claim their payment had failed, and then direct victims to a fake site to re-enter their payment information.
The common denominator is a phone call in which the scammer claims to be from your utility company and demands immediate payment. They may directly ask for personal financial information, such as account or credit card numbers, or instruct you to pay using a method that you cannot easily recover (such as a prepaid debit card or bank transfer).
In some cases, scammers may contact you by email or even show up at your door, posing as a utility worker.
How to Avoid Utility Scams
As with any scam, don’t take any message asking you to pay money at face value. If you owe money to your utility company, you will likely receive several notices before service is cut off, and these are usually delivered by mail or on a door tag. Your utility company won’t call you and demand payment, and if you ‘re behind on your bills, they’ll probably help you set up a payment plan. They are also more likely to simply disconnect your service rather than harass you over the phone.
If you receive a phone call or email—or, heaven forbid, an in-person visit—from someone claiming to work with your utility provider, do not proceed or confirm any personal information. Call the company back using the phone number on your bill or in your secure online account to verify everything you’ve been told. Please note that scammers may create fraudulent websites and phone numbers that appear in searches, so obtain contact information from documents you already have or by logging into your utility account.
Don’t pay bills using untraceable methods and don’t easily get your money back. Only scammers require you to use a specific method, such as bank transfers, prepaid debit or gift cards, QR codes or payment apps – your real utility company will always have several secure ways to pay your bills.