Utility Scams: Imposters After Your Utility Payments

Water, electricity, gas, telephone, and even internet are common utility expenses. Yet even these have not escaped the reach of wily scammers. Utility scams come in three known ways: Email, phone call, or a knock on the door.

In all these ways, the scammer pretends to be an agent/official of your local utility company. This scam follows a common predictable pattern. The scammer will either claim that you have not paid the bill sent to you and threaten to disconnect you immediately, or that you overpaid and should claim a refund.

Common Signs of a Utility Scam

Beware of emails or calls that fail to address you by your name. Utilities require that you register for the service by giving your name and address of your house. So, they have your name in the file. Other common signs include:

• Threats of disconnection if you fail to pay immediately.
• Requests to confirm your name and other personal details. The scammer hopes you’ll give them information that enables access to your money.
• Unprofessional email address and language. Companies will have branded emails that bear their official brand name.
• Suggestions to pay your utilities using alternative means like gift cards, cryptocurrency, and wire transfers. All these means are either untraceable or irreversible. There is no way of getting your money back if you use them.

Examples of Utility Scams

Power Shut Off and Restoration

This commonly comes in an email that looks like the one from your power company. The message is to pay your bill now or be cut off. Upon examination of the sender email, you will notice it’s not the same sender as your power company.

Some scammers call claiming you are behind on your bill payments or have arrears. Then they give you a specific amount to pay and where to pay. This scam works because the amounts given are usually low but targeted at so many people it adds up to a huge sum.

Some scammers wait for times of disaster when there are power outages due to storms and come walking door to door demanding to be paid for reconnection and repairs. Others still show up unannounced claiming your power unit is up for repair, replacement, or upgrade and demand you pay immediately for the service.

Utility Company Imposter

Scammers here impersonate an official worker from one of your utility companies and come demanding that you pay them cash immediately. They can be very harsh and threatening in delivering this message while dressed in company work wear.

These scammers who come in person are dangerous because some of them will want to access your home to check the power, water or any other thing. In this war, they can use that as an excuse and rob you of your valuables. Beware of company employees conducting unscheduled visits. Also, whenever your utility company is doing any such routine checks, you ought to be notified in advance. Random visits are most likely scammers; or worse, robbers!

Overpayment Scam

We would all love to receive a refund for any of the common utilities- water, gas, electricity, telephone, internet. But what happens when you are notified of a refund due to you and asked to fill in your details to claim it? Do not do it.

Sounds a bit fishy that a company that registered you for service needs your details refreshed. That’s because it is a scam. If you are truly up for a refund, such utility companies will simply reimburse you directly or roll it over to your next bill.

Fake Federal Programs

This is aimed at people struggling to get by and in need of help. The scammers tell them to sign up for a federal program to help with utility bills. Giving their name, address, and Social Security numbers. Then the scammers can use these to steal their identity.

How To Protect Yourself From Utility Scams

• Never give out your banking information by email or by phone.
• Ignore threats of immediate disconnection when you know your bill due date or that you have already paid.
• End the phone call and don’t reply to suspicious utility bill emails especially if they ask to click on given links.
• Contact your utility provider directly. Use your previous paid bills to get their official phone number or email.
• Report the issue to your local law enforcement. Report to scam to FTC and Action Fraud. Don’t be embarrassed about losing money to a scammer.