Utility companies work to protect customers from scams during National Consumer Protection Week
Utility companies across the country are working together to raise awareness of utility scams as part of National Consumer Protection Week in an effort to help customers protect their bank accounts from fraudsters looking to steal.
The Federal Trade Commission’s campaign that runs from March 3-9 focuses on protecting Americans from scams, identity theft, and other unfair, deceptive and fraudulent business practices. In a show of solidarity, Utilities United Against Scams (UUAS), a consortium of 125 U.S. and Canadian electric, water and natural gas companies and trade associations, is continuing its efforts to educate consumers on how to identify scams and what to do if they spot one.
“Organizations join Utilities United Against Scams to help protect their customers and communities against fraud, and the impact of the coalition’s efforts to combat impostor utility scams is evident,” Monica Martinez, executive director of UUAS, said. “The amount of fraudulent toll-free numbers reported by utilities account for roughly half of all numbers reported. In addition to our work shutting down fraudulent toll-free numbers, UUAS also will continue to highlight the most common scam tactics and provide resources to help utility customers better protect themselves from impostor utility scammers.”
In November 2018, UUAS worked with law enforcement and telecommunications partners to shut down more than 2,000 toll-free numbers used by scammers to target utility customers. The organization was awarded the Toll-Free Industry’s Fraud Fighter Award in October in recognition of its advocacy and awareness campaigns to stop scams. In addition, UUAS has published a consumer’s resource guide to impostor utility scams.
However, despite efforts to shut scammers down, their deception of consumers continues.
St. Louis-based Ameren Corp. said utility scams in its service area seem to be on the rise.
“We take scams targeting our customers seriously and personally,” Terry Roberds, director of corporate security at Ameren, said in a written statement. “Now we see scammers using aggressive and sophisticated tactics threatening to cut service, demanding immediate payment, usually through an untraceable transaction. We want all our customers to know that isn’t how Ameren works.”
The company said that scam activity directed at small businesses is growing at a cost of $7 billion annually across the country.
In Iowa, MidAmerican Energy said its customers have reported an uptick in scam activity. Typically, the company said, imposters posing as MidAmerican Energy employees will call consumers and demand immediate payment for utility bills they claim are past due. Scammers will insist that consumers pay the bill immediately with a prepaid debit card, or face having their power shut off.
The company said it works to educate consumers about its collection procedures in order to hamper scammers from being successful.
“We provide several notifications to customers who are behind on payments,” Mike Gehringer, vice president of customer operations at MidAmerican Energy, said in written remarks. “Utility disconnection is a last resort, not a first step in the process. Protecting customers from scams is a top priority for us.”
Northwestern Energy, which delivers energy to customers mainly in Montana and South Dakota, said that customers often alert them to scam activity.
“Our Customer Service representatives receive calls every week from customers reporting scam activity,” said NorthWestern Energy Director of Customer Interaction John Thurmond. “This is a terrible and expensive crime and the more we can do to raise awareness the better it is for all of us.”
In some cases, the scammers are becoming increasingly tech savvy.
At PSEG Long Island, customers have reported receiving phone calls with a PSEG Long Island caller ID. The person on the phone identifies themselves as a PSEG Long Island employee and demands immediate payment via a pre-paid debit card, or bitcoin to prevent service disconnection. Once the victim agrees to the payment, they are given a separate phone number to call. Upon calling the number, the victim is prompted through an interactive voice response system similar to PSEG’s. When a fake representative answers the call, they ask for the number on the back of the pre-paid debit card, or request that the customers deposit bitcoin to a certain location.
While the utility offers a number of different payment options, it does not accept pre-paid debit cards or bitcoin.
In 2018 more than 4,088 scams were reported to PSEG Long Island, a 75 percent increase over 2017, the company said. Over the past 5 years, the company has received more than 10,000 reports of scams, with victims succumbing to them 6 percent of the time.
“To better protect customers, it is critically important we continue to raise awareness and educate the public about scams,” Rick Walden, vice president of customer operations at PSEG Long Island, said in a Feb. 21 written statement. “If you receive a call from anyone demanding immediate payment, do not give them any personal or account information. Hang up the phone and call PSEG Long Island at 1-800-490-0025.”
