The Daily Record, May 2016

Consumers are constantly being warned of new scams that develop and old ones that continue to pose a threat. Even when a scam has been around for quite some time, the perpetrators seem to find new ways to trick people and/or find new targets. Utility scams continue to be an issue for consumers today. While the scams are not overly sophisticated, people fall victim because their fear of losing their electricity outweighs their skepticism. The Federal Trade Commission (“FTC”) publishes a Top Ten Consumer Complaint list each year, identifying the number of complaints received by category. The utility scams discussed below would fall under the “imposter scam” category. In 2015, the imposter scam category remained in third place with 353,770 complaints or 11% of all complaints received during the year. 

Utility Scams in the news

There have been several reports in the news recently warning customers of the ongoing scams. Most of the warnings seen online are coming from the utility companies themselves as a result of receiving calls from their own customers. It seems as though the majority of the scams are similar in nature, involving someone posing as an employee of the utility company, threatening to turn off the customers’ service if payment is not received immediately. Thankfully, there are customers out there who are skeptical enough to be calling their utility company to report the threats. However, it is still important to be aware of the different types of scams, and how to protect yourself.

Types of Utility Scams

Most utility scams fall under one of three different categories:

• • Bait and Switch: Someone posing as a representative from a different utility company calls or writes saying they can save you money on your utilities if you switch to their company. However, the savings could be short-lived before they increase prices to more than what you were previously paying or they won’t be saving you money at all.
  • The Shutoff Swindle: An imposter calls telling you that you are behind on your payments, demanding payment immediately or they will turn off your power.
  • Missed connections: Someone posing as a utility worker knocks on your door during a power outage claiming they can get it fixed for a cash payment. In the rush of the moment, you pay cash. However, after the person leaves, your power does not come back on.

How to protect yourself

The Federal Trade Commission published the following information to help educate consumers to protect against utility scams:

• • If someone comes to your door and asks to see your electricity bill, do not give it to them under any circumstances.
  • Most utility companies will never call you on the phone in order to inform you that your power is being shut off. They prefer to communicate by mail.
  • Do not click on links or call numbers that appear in unexpected e-mails or texts messages – especially if they are asking for your account information.
  • Don’t give cash to any “representative” who comes to your home, even if they have a uniform or ID.
  • Don’t be pressured by immediate demands for payment. Hang up and call your utility company using the number on your statement.
  • Don’t give out your account number or other personal information to someone soliciting you. Your utility company already knows your account number. They will not call you and ask you to verify it.
  • Utility companies offer a number of bill payment methods. Contact your company for assistance if you are late or behind on bills.
  • Never provide your social security number, credit card number or banking information to anyone who calls you.
  • Never allow anyone into your home to check electrical wiring, natural gas pipes, or appliances unless you have scheduled an appointment or have reported a utility problem.
  • Always ask for proper identification.

What to do if you suspect a scam

If you suspect that you received a phone call or in-person visit from someone posing as an employee of your utility company, you should do the following:

• • Hang up the phone and alert local authorities.
  • Contact your utility company.
  • File a complaint with the Federal Trade Commission at reportfraud.ftc.gov.

Be Skeptical

Perpetrators are adept at catching people at their most vulnerable moments. Being able to recognize suspicious activity is the first step to protecting yourself. Always remain skeptical of anyone calling you regarding your utilities, or other accounts you may have. If the call doesn’t feel right, most likely it’s not. Know when to hang up and get help.