10 Common Utility Bill Scams and How To Avoid Them
Written by
Elizabeth Constantineau, AI Editor
Edited by
Elizabeth Constantineau
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Everyone wants to keep their utility and energy bills in check. However, scammers have discovered this as a profitable avenue for trickery, exploiting the common need for utilities. Keep reading to learn about 10 common utility bill scams.
10 Common Utility Bill Scams
Here are 10 common utility bill scams that you should know.
- Overdue bill scam
- Advanced fee scam
- Fake representative scam
- Government aid scam
- Tampered meter scam
- Fraudulent payment method scam
- Phishing email scam
- Energy audit scam
- Utility company impersonator scam
- Power disconnection scam
1. The Overdue Bill Scam
With this scam, you might get a call from someone posing as your utility provider. They could warn you of an overdue bill and threaten to disconnect your electricity or water unless you pay immediately. “This is a scam,” should immediately come to mind. Always verify directly with your utility company before making any payments.
2. The Advanced Fee Scam
Scammers may promise a hefty discount on future bills if you pay an advance fee. As appealing as this sounds, it’s typically a ploy to drain your wallet. Always be skeptical of too good to be true offers.
3. The Fake Representative Scam
In this scam, fraudsters impersonate utility company representatives. They will visit your home, claiming to conduct inspections or repairs. They use this opportunity to steal or solicit personal information. Before allowing anyone into your home, you should request an ID.
4. The Government Aid Scam
Scammers may claim that you’ll get help with your energy bill from the government. All you need to do to claim it is provide your personal information. Remember, government agencies typically don’t call to offer financial assistance. If you’re in doubt, and think to yourself, “This is a scam,” call the agency directly.
5. The Tampered Meter Scam
Some scammers might offer to tamper with your utility meter to lower your bills. Engaging in such activities is illegal and could result in hefty fines or imprisonment. Stick to legal methods of reducing your energy bills, such as energy-efficient appliances.
6. The Fraudulent Payment Method Scam
Scammers sometimes ask for payment through untraceable methods like gift cards or wire transfers. Legitimate utility companies usually provide multiple, traceable payment options. Be wary of unusual payment requests.
7. The Phishing Email Scam
Scammers might send an email mimicking your utility company. It will prompt you to click a link and enter your personal information. If you detect signs of phishing like poor grammar, remember, “This is a scam,” and avoid clicking on suspicious links.
8. The Energy Audit Scam
This scam involves someone offering a free energy audit or inspection, claiming they can save you money. They often use this as a ploy to get into your home or gain access to your personal information. Always double-check such offers with your utility company.
9. The Utility Company Impersonator Scam
Scammers may call or email, pretending to be from your utility company. They may ask for personal information or payment details. If you find yourself wondering, “This is a scam, right?” trust your instincts. Hang up and call your utility company directly using the number from your bill.
10. The Power Disconnection Scam
Scammers, posing as utility company employees, call to warn of a power disconnection due to unpaid bills. They demand immediate payment and often specify how it should be paid. Do not interact with them and consult your utility company directly.
Tips To Avoid Falling for Scams
If you encounter a situation that seems suspicious, you can use these tips:
- Always double-check any communication claiming to be from your utility company. Call the number provided on your bill, not a number given to you in a suspicious email or phone call.
- Be wary of demands for immediate payment, especially if it involves a specific method such as gift cards or wire transfers.
- Never share personal or financial information without verifying who you’re sharing it with.
- Learn how your utility company typically communicates important messages. If an email, phone call or text seems out of the ordinary, it’s better to be safe and double-check.
Final Take
With a thorough understanding of common utility bill scams, you can protect yourself and your finances. Your goal should be a smooth, transparent relationship with your utility providers, without the fear of getting scammed.
FAQ
Here are the answers to some of the most frequently asked questions regarding utility bill scams.- Can someone steal your identity from a utility bill?
- Yes, someone can potentially steal your identity from a utility bill. Utility bills often contain personal information, including your name, address and account number. If a scammer obtains this information, they could use it for a variety of fraudulent activities. For instance, they could attempt to open new accounts in your name, manipulate your existing accounts or use your identity to trick others.
- It is crucial to keep your personal information safe and to dispose of utility bills securely. One easy way to do this is to shred your bills.
- What are energy scams?
- Energy scams typically involve scammers who pretend to represent energy companies. They will attempt to extract money or personal information from victims.
- Some common energy scams include:
- The phony utility worker scam: Scammers pose as utility employees to gain access to victims' homes.
- The overdue bill scam: This is where fraudsters convince victims that their bills are overdue and their utilities will be shut off unless they make immediate payments.
- The disconnection deception scam: Scammers call victims threatening to disconnect their utility services unless they pay a certain amount immediately.
- The prepayment meter credit scam: Victims are offered discounted or free energy by paying in advance.
- The unsolicited energy audits scam: Fraudsters may pretend to offer free energy audits to gain access to personal information.
- The phishing scam: Scammers will send emails or texts pretending to be from the victim's energy company to gather personal data.
- Why are people knocking on your door asking about your utility bill?
- If someone is knocking on your door asking about your utility bill, they could be:
- A legitimate representative from an energy company.
- A salesperson for a competing energy provider.
- Or unfortunately, they could also be a scammer.
- It's a common method for scammers to pose as utility representatives or energy salespeople to trick you into giving out personal information or making unwarranted payments. Always ask for identification and if in doubt, call your utility company to verify the person's identity.
- If someone is knocking on your door asking about your utility bill, they could be:
- What can a scammer do with my electric account number?
- A scammer that has your electric account number can potentially perform fraudulent activities. They may be able to access your account, manipulate it, change settings or even transfer the account into someone else's name. They could use the information to steal your identity or may attempt to trick you into paying them directly, causing you to incur late fees or disconnection of service.
- If you suspect your account number has been compromised, immediately contact your electricity provider to alert them of potential fraud.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
