Tips on Staying Safe From Utility Bill Scams

Power Play

With millions of Americans unemployed, it should be no surprise scammers are busy at work. As the FBI noted recently, criminals are opportunistic, and the coronavirus has created a vulnerable population that scammers can prey upon. The Federal Trade Commission recently issued a similar warning, highlighting an increase in utility scams and a ploy designed to “dupe people out of their cash and personal information by convincing them their utilities will be shut off if they don’t pay.” Protect yourself from these and other similar appeals with these tips for avoiding utility bill scams.

Frustrated Phone call — VioletaStoimenova/istockphoto

Scammers Try to Create a Sense of Urgency

One of the most frequently used and successful tactics among scammers is trying to convince you the situation is urgent or dire, says Matthias Alleckna, energy analyst for the rate comparison website EnergyRates.ca. “They try to get you in a panic and convince you that your payments are late as of this moment and that you need to pay them right now or your utilities will be shut off immediately,” he says. “They know that when people panic, they’re less likely to take precautions or ask questions for fear of hesitating in an emergency.”

Giving Credit card over phone — solidcolours/istockphoto

They Ask for Banking Information

It’s important to remember: A legitimate utility company will not call (or email) to ask for banking information, says the FTC. If someone does call, do not provide it, “even if the caller insists you have a past due bill or your services will be shut off.” Utility companies will also not force you to pay while on the phone with them, or claim it’s your only option. The only time you should provide such information is if you placed the call to a utility company number that you know is legitimate. Look for contact information on a real bill, or by searching out the company’s confirmed website.

When Not To Give Out Your Social Security Number — KenTannenbaum/istockphoto

They Ask for Sensitive Personal Identification Information

Scammers also often try to get sensitive personal identification information from you. “Under no circumstances should you offer your Social Security number when they ask for it,” Alleckna says.

They May Request Unconventional Methods of Payment

Wire transfers, prepaid cards, gift cards, or bitcoins are not acceptable and reputable forms of payment for a legitimate business. “Utility companies typically accept mailed checks, debit payments, or credit card payments,” Alleckna says. “These methods of payment typically leave a paper trail, something that criminals tend to avoid.”

They’ll Have Only Vague Details About Your Account

When you’re approached by scammers, they'll typically only have very limited details about your account — and that’s a red flag you should pay attention to. Ask more. “Any probing will make the scam fall through, and they’ll get impatient,” says Jake Hill, CEO of DebtHammer, a personal finance publication.

Utility Meter Readers — powerofforever/istockphoto

They Visit Claiming to Be Utility Employees

Scammers might knock on your front door pretending to be from a utility company and offering to conduct an energy audit or help in some other way. “Be cautious about home visits from people purporting to work for any energy company and asking to see your utility bill,” says David Cusick, chief strategy officer for House Method, a resource website for homeowners. Cusick says such scammers typically try to get you to sign up for their service “all while obfuscating who they are or their connection to your utility company.”

They May Try to Get Personal Information by Email

Yet another scammers’ tactic: sending email that asks you to call or click on a link to provide personal information. “If there are suggestions you click on a link and provide personal information to avoid shutoff, it’s a scam,” says Laura Fuentes, operator of Infinity Dish, a television and internet service provider. “The sad truth is that these scams prey on the elderly, particularly those who are already less versed in technology, but they can happen to anyone.”

Senior Man working on computer — adamkaz/istockphoto

Know Your Rights

In many places, it's illegal to shut off utilities at certain times of the year and without due notice. “Most utility companies don't shut off without first reaching out the customer,” Alleckna says. During the coronavirus crisis, many utilities promised not to shut off power of people unable to pay their bills; utility companies in some places have resumed shutoffs. Research the situation in your state to understand your rights as a consumer and avoid scam artists.

frustrated on phone — apomares/istockphoto

Ask a Lot of Questions

However a scammer may make contact, it’s important to ask a lot of questions to ensure you know who you’re dealing with. “They'll always have some convenient story that glosses over the fact that they're not utility company employees merely conducting a check,” Cusick says. “They're often salespeople trying to skirt door-to-door solicitation laws and overcome consumer common sense. Poke holes, and once it becomes clear they're not legit, tell them firmly to leave.”

Register with the Do Not Call Registry — aluxum/istockphoto

When in Doubt …

If you're unsure whether you’ve been contacted by an imposter, simply end the conversation — hang up the phone, shut the door — and check your account to see if you’re late on a bill and your service is really in jeopardy. “If nothing seems out of order, you can call your provider directly and ask them to verify that the information you previously got was misinformation,” Alleckna says. “Report to them that there’s an impersonator targeting their customers.”

Turn to Your Friends for Help and Tap Their Network — svetikd/istockphoto

Spread the Word About Potential Scams

If you’ve been targeted by a scam, it’s likely many other people have. The FTC recommends telling your friends and loved ones so they can protect themselves. When people hear about scams, they’re more likely to avoid them.

Report Scams to the FTC

Finally, it’s important to let the FTC know about the potential scam tactic or organization. The agency can then alert its law enforcement partners and potentially stop the scammers. You can report suspected scams here.