As the winter season approaches, it is more important than ever to have everything working well with your utility provider. After all, no one wants to have their heat shut off in the middle of a cold spell.
Unfortunately, scammers are aware that people often start to feel more vulnerable this time of year. As a result, many are targeting people’s insecurities and getting them to part with their money.
Utility providers have issued multiple warnings about scam threats recently. These threats could cause major financial losses, so you need to be aware of how criminals are perpetrating the scams and what you can do to avoid them and stay safe.
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Utility providers warn of aggressive scam
According to Rocket City Now, Huntsville Utilities in Huntsville, Ala., warned customers about a phone scam that could put them at risk. WTAQ in Wisconsin also reported an increase in utility scams. And these are just two of many warnings out there.
Huntsville Utilities explained that a scammer, who is calling himself “Kevin,” has called multiple customers and demanded immediate payment. The scammer threatens that utilities will be shut off very soon if the customer does not provide funds right away.
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Unfortunately, when customers call back, the phone number from which they were called is answered as “Huntsville Utilities.” Rocket City Now indicates that this demonstrates the “sophisticated nature of the scheme.”
WTAQ, on the other hand, reported that scammers are contacting WPS customers in the local area and running the same scheme, threatening disconnection unless an immediate payment is made. These scammers also ask for bank or account information.
How much customers have lost from utility scams
The specific extent of the losses has not been disclosed. However, according to WTAQ, some victims who fell for the scam lost over $10,000 over the course of a week.
According to the 2023 Better Business Bureau Scam Tracker Risk Report, victims of utility scams in general experienced $463 in median losses.
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That’s a substantial amount of money, and as Tampa Electric (TECO) reported, Karen Nalven, president of the Better Business Bureau serving West Florida, warned:
Utility companies warn that the scam is aggressive
According to WTAQ, the scammers who are running this particular con are using common tactics, prompting people to act.
“Scammers are aggressively contacting WPS customers throughout the area by phone, threatening them with disconnection unless an immediate payment is made, or asking for account or banking information,” WTAQ reported.
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Like many scammers, these criminals are trying to create a sense of urgency. When you are afraid of something bad happening very soon, you are more likely to make questionable choices, or choices you come to regret.
These include providing your banking details over the phone without independently verifying who’s receiving the information.
How to protect yourself from utility scams
The good news is that you can protect yourself from this scam and similar ones that may be operating in your area.
You can watch for red flags, which WTAQ reports include:
- Threatening to turn off service in a short time period
- Demanding immediate payment
- Demanding payment using an unusual payment method, such as cryptocurrency or using a prepaid card or app
- Someone showing up at your door from the “utility company” while refusing to show ID
Rocket City Now also suggests hanging up immediately when someone calls asking for money, and finding the phone number of your utility provider independently – not just calling back the number you were called from – to make sure the call is legit.
By taking these steps, hopefully you can keep yourself and your money safe this upcoming season.
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