The most common utility scam is when someone calls and pretends to be from your local utility. You are informed you are behind on your bill and if you don’t pay immediately, service will be cut off.
The scammer is trying to get you to immediately pull out your credit card and give them the billing information, or even worse, a way to access your bank account.
Don’t Do It!
Demand for payment is a tip-off
If you get one of these calls, you should be highly suspicious. Utility companies don’t normally call customers who are overdue – most communication is by mail. Someone who demands immediate payment over the phone is trying to scam and defraud you.
Your utility company will never call and demand payment via a prepaid debit card. Prepaid debit cards are becoming an increasingly popular method of payment for scammers. Wire transfer services have tightened their security, so crooks have turned to these prepaid cards instead. The cards are difficult to trace, and you do not need photo identification to collect or spend the money. Be sure you treat a prepaid debit card like cash and remember that transactions cannot be reversed.
If you get one of these calls and you think it might be legitimate, the the caller you will take care of it immediately and hang up.
Next, find one of your utility bills and call the customer service number. Ask the customer service rep if your account is, in fact, past due. They will have accurate information regarding your bill status.
Bait and switch
AARP (American Association of Retired Persons) warns of another utility scam that is showing up with increasing frequency. A telemarketer may call and tell you that you qualify for a 15% to 20% discount. First, however, you have to give them the account number of your current utility account. The next thing you know, you have a new utility company and the promised discount may disappear into thin air. According to AARP, some natural gas and electricity suppliers use telemarketers, and even door-to-door salesmen, to recruit new customers. After a brief introductory period your rates may skyrocket and you find yourself at the start of an expensive long-term contract.
Sometimes these scammers are very convincing and will use “spoofing” technology that makes it appear that the call is coming from a legitimate utility company. You must be vigilant when it comes to anyone seeking payment information on utility bills, either in person or via the telephone or internet.