Utilities United Against Scams warns consumers about more advanced digital cons

Published on March 06, 2024 by Kim Riley

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Customers should be aware that scammers are using more advanced digital tactics to target them, warned Utilities United Against Scams (UUAS) during this week’s annual National Consumer Protection Week.

“A more recent scam uses fraudulent websites that are identical to a utility payment page and that are promoted on search engines to trick customers into clicking the page and making a payment,” UUAS Executive Director Monica Martinez said. “UUAS and our members are committed to educating customers about utility scams.” 

Utility impostor scammers pretend to represent electric, natural gas, water, and sewer utilities as a way to steal customers’ money and personal information, according to UUAS, and they approach customers through myriad methods, including texts, phone calls, in-person visits, and emails. 

Scammers often will demand payment and threaten service disconnection, claiming a customer is past due on their utility bill, the organization said. 

The newly issued warning from UUAS — a consortium of more than 150 U.S. and Canadian electric, water, and natural gas utilities and their respective trade associations — is part of its effort to support the Federal Trade Commission’s annual National Consumer Protection Week, which is also being recognized by more than 100 federal, state, and local agencies; consumer groups; and national advocacy organizations. 

Reports of utility scams targeting customers were at an all-time high during 2023 and the number of reports is continuing at a high level so far in 2024.

For example, Pacific Gas & Electric (PG&E) received more than 2,500 reports of attempted scams in January alone, with customers paying scammers over $67,000 during the month. In 2023, PG&E received nearly 43,000 reports from customers who were targeted by scammers impersonating the company, and customers lost approximately $875,000 in fraudulent payments, with the average customer losing $785.

“Scammers will attempt to create a sense of urgency by threatening immediate disconnection of your utility services if you don’t make immediate payment. Remember, PG&E will never ask you for financial information over the phone, nor will we ask for payment via pre-paid debit cards or money transfer services like Zelle,” said Matt Foley, lead customer scam investigator for PG&E.

UUAS suggests that if customers suspect they have been contacted by a scammer, they should contact their local utility and law enforcement. 

The group also released general tips that consumers should consider in order to avoid scams, such as protecting personal information by never providing it to anyone who initiates contact with you claiming to be a utility company representative.

Another tip to avoid scams is to take your time, said UUAS. For instance, if a request for payment is unexpected or seems suspicious, end the conversation and contact the utility using the verified phone number on a recent bill or the utility’s website to check the true status of an account.

And only make payments using that verified phone number or website. “Remember your utility will never ask you to make a payment through methods like a prepaid debit card, a gift card, cryptocurrency, or through third-party digital payment mobile applications,” UUAS said.