How to Spot Utility Scams

With high temperatures gripping the U.S. this summer, you should be on the lookout for scammers claiming to be with utility companies. Utility scams tend to increase during extreme weather to take advantage of people looking for ways to cut energy costs or to scare them into believing that their service will be cut off.

Here’s what to know about how utility scams work and what you can do to protect yourself.

Types of utility scams

Scammers impersonating utility company employees use a variety of ways to target utility customers. However, these are the most common tactics they use, according to the Better Business Bureau and Utilities United Against Scams, a consortium of U.S. Canadian utility companies and trade associations.

Phone scams: Scammers call or text and claim to be with a local electric, gas or water utility company. Some even use technology to make the number that appears on caller ID the same as the utility company’s number. They typically make the following claims:

• Payment is overdue and service will be disconnected unless an immediate payment is made;
• There was an overpayment and bank account information is needed to send a refund;
• An offer for assistance in paying utility bills; or
• An offer to restore power for a fee after an outage.

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Door-to-door scams: Scammers might appear at your door wearing what looks like a utility company uniform that might even have the name of the utility company on it. In these situations, they make the following offers or claims to get a payment, your personal information or access to your home:

• An offer to enroll you with a provider or contract with a lower rate;
• An offer for an energy audit, efficiency inspection or water quality testing;
• A claim that there is a water or gas leak and that access to your home is needed; or
• A claim that an upfront payment must be made to upgrade or repair a meter or utility-related device.

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Email scams: Scammers send emails that appear to be from utility companies and prompt recipients to click on links or attachments by making the following claims:

• Request for payment with a bogus utility bill attached;
• Request for immediate payment to prevent disconnection of services with a link to a fraudulent site; or
• Request to update account information to receive discounts or to continue service.

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Signs of utility scams

Scammers use a variety of stories and often come up with new ways to persuade utility customers to make payments or hand over their personal information. So, it can be a challenge to keep up with the latest scams that are circulating. However, utility scams have these red flags that make them easy to spot.

• Pressure to make an immediate payment to avoid disconnection: Utility companies typically send a written notice of service disconnection for nonpayment with your bill at least 15 days in advance.
• Request for a specific payment type such as a prepaid card, gift card, wire transfer, money order or cash: Utility companies offer a variety of payment options and don’t request specific, nontraditional forms of payment.
• Request for personal information over the phone: Utilities won’t call and ask for your personal or account information unless you initiate contact. They also won’t send emails or text messages requesting personal information.
• An unannounced visit by a utility worker: Utilities typically won’t send workers to your home unless you have scheduled an appointment.

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How to avoid utility scams

Take these steps to protect yourself from scammers impersonating utility company employees.

Protect your utility account information by shredding statements before tossing them in the trash to prevent thieves from using that information to convince you that they work with your utility companies. And never provide your personal information to anyone who initiates contact with you by phone, email or at your door.

Don’t make any payments over the phone, through a link in an email or at your door if someone contacts you claiming to be with a utility company. Hang up, don’t respond to the email or shut the door, and contact your utility company directly to find out if you owe money.

Take your time and ask questions. It’s a red flag if someone is pressuring you to act immediately, can’t answer your questions, can’t verify their identity as a utility company employee or can’t provide details about your account, such as your last payment amount.

Don’t let anyone in your home unless you have scheduled an appointment with your utility company. Even then, ask to see an employee ID.  

Keep track of your utility payments. If you’re aware of your account status and know that payments have been made on time, you’ll know that a call or email alerting you to an overdue account is a scam. Signing up for automatic electronic payments can ensure that utility bills are paid on time each month. And using an account monitoring service such as Carefull can alert you when bills you typically pay are late or missed. Carefull also can alert you to more than 50 other money mistakes, unusual transactions and signs of fraud.

If a scammer contacts you, alert your utility company and provide details of the interaction so that the company can warn others of the scam. If you are a victim of a utility scam, contact your financial institution immediately. Depending on the form of payment you used, you might be able to cancel it. File a report with local law enforcement. And if you shared any personal information with a scammer, visit IdentityTheft.gov for steps to take to protect your identity.

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