Without warning, you receive a call from someone claiming to be from your gas company who tells you to make a payment immediately. Or someone comes to your door claiming to be from an electricity service provider and asks to see your bill to help you save money. Scammers will use various tactics including elements of surprise, aggression, act now, and fear to try to get you to do what they want. Don’t fall for it. There are ways to protect yourself from these types of scams.
Utility Scams
One of the main purposes of fraud is to steal and there are ways to identify utility scams. Calls claiming payment or your service will be shut off is likely not coming from a utility company. Requests for payment in the form of a gift card, wire transfer, or cryptocurrency are not requests coming from a utility company. Someone stating information that is different from what you have on your utility bill is likely a scammer.
According to the U.S. Federal Trade Commission, calls from scammers claiming to be from your water, gas, or electricity company will tell you to wire money (e.g. MoneyGram, Western Union) and give you the number of a reloadable card or gift card or require you to pay them with cryptocurrency because these payment methods are hard to track and almost impossible to get back. Scammers may also offer to send you a barcode, or QR code. More tips from the U.S. Federal Trade Commission:
- If you receive a call, hang up. Use the number on your bill, or on the company website, to confirm the information. If the person left a call-back number, ignore it. Call back numbers are often fake. If your bill says you owe anything, pay it as you normally would, not as the caller says. If a message came by text, do not respond and do the same.
- Never wire money or pay with a reloadable card, gift card, or cryptocurrency to anyone who demands it. Only scammers will require these types of payments.
- Ignore barcodes. Utility companies do not provide barcodes to make payments.
Already Paid a Scammer?
If you paid a scammer, contact the company you used to complete the transaction.
Typically, cryptocurrency payments are not reversible. You can get your money back if the person you paid sends it back. But, if you paid with cryptocurrency, contact the company you used to send the money and tell them it was a fraudulent transaction. Ask them to reverse the transaction, if possible.
Additionally, you can report a scam to the U.S. Federal Trade Commission at ReportFraud.ftc.gov
Electricity Service Scammers
Scammers may come to your door claiming to be from an electricity service provider. They will say something nice about your home, even compliment what you’re wearing to try to quickly gain trust. When they see that your guard is down, they will ask to see your bill to help you save money. They may even mention the name of one of your neighbors to try to convince you. Scammers will often try to find ways to get you to do what they want. But here are a few aspects to consider:
- Be cautious of allowing strangers inside your home. You want to keep the advantage and consider how you would end the conversation if needed. This may mean talking through a screen door or having the door only partially open.
- Don’t share your account number. Or let solicitors see your bill or other personal information. This can lead to identity theft.
- If you feel uncomfortable, close the door. The absence of branded materials, requests for payments, the need to act now are all indicators of a likely scam.
When Choosing an Electric Supplier
Additionally, there may be alternative electric suppliers in your area. States and municipalities may allow alternative retail suppliers to offer certain electric services after meeting criteria. For example, the electric supply you receive can be either from a public utility or through an alternative. If you are presented with what appears to be a better deal, from an alternative electric supplier, be sure to read and understand what is being offered before signing up. Choosing an alternative will not always save you money.