Are Scammers Posing as Your Utility Company?

Recently, the Federal Trade Commission reported an increase in scammers pretending to be representatives of utility companies.

Scammers may call, text, email, or even visit someone in person, threatening to shut off gas, electric, or water service unless immediate payment is made. These scams work by pressuring people to send money before they have time to verify whether the claim is legitimate. Real utility companies do not conduct business this way.

These scammers often insist that payment can only be made through a wire transfer service like Western Union or MoneyGram, cryptocurrency, a payment app, or a gift card. They prefer these methods because they make it much more difficult for victims to recover their money once it has been sent.

How to Avoid Utility Scams

There are three key things to keep in mind:

1. Never Trust Demands for Immediate Payment

Legitimate utility companies do not demand immediate payment to avoid same-day disconnection. If someone contacts you claiming to be from a utility company and threatens to shut off your service unless you pay right away, hang up the phone, ignore the message, or close the door. Do not click any links, respond to the message, or allow anyone to pressure you into making a payment.

2. Contact the Utility Company Directly

If you have questions about your account balance, payments, or billing issues, contact your utility company using the phone number on your bill or the company’s official website.

If you search online for your utility company, pay close attention to the search results before clicking. The top results are often paid advertisements, and dishonest businesses sometimes use these ads to imitate legitimate utility companies. While these companies may pay your bill, they often charge additional fees that you could avoid by dealing directly with your utility provider. Scrolling past sponsored results can help you find the company’s official website and contact information.

3. Be Wary of Certain Payment Methods

Never pay anyone who demands payment through wire transfers, cryptocurrency, payment apps, or gift cards. Requests for payment through these methods are a major warning sign of a scam. Legitimate utility companies and other reputable businesses do not require customers to pay this way.

If you are struggling to pay your utility bill, there may be options available to help. If you encounter a utility scam, report it to your utility company using a verified phone number. You can also report scams to the FTC through ReportFraud.ftc.gov or contact your state’s attorney general.

Source: Consumer.ftc.gov