Utility Scam Awareness Day

November 18th is Utility Scam Awareness Day

You know you paid that last electric bill, but the representative from the electric company is adamant that your bill is overdue and if you do not send payment immediately, your power will be cut. You know you paid that bill...but it's getting colder, the days are growing shorter - you cannot risk losing power right now.

This is a cybercriminal's goal. In this scenario, the attacker is using social engineering to try and intimidate the victim. Unfortunately, these scams, known also as "imposter scams," are the most common type reported to the Federal Trade Commission.

Imposter scams?

In an imposter scam, the imposter will call residences and/or businesses and make some form of demand, often demanding payment for service up front and/or threatening to terminate service if the requested action is not taken. The caller will be very persuasive, they do not want you to hang up, and they may request you make your payment over the phone using debit or credit card information. Imposters plan utility scams for times of change or urgency, such as busy times for businesses or during peak climate changes during the year.

This article focuses on electronic imposter scams - imposter scams involving utility agents appearing at your door also exist.

An imposter might not always demand payment. The COVID-19 pandemic has lead to an unprecedented increase in cybercrime. Not only has the prevalence increased, but scammers are using more sophisticated and intimidating tactics such as the scenario described above. Scammers can manipulate their caller ID to appear as your local utility company or any other entity. Several other ways imposters have been known to attempt these electronic scams include:

• Attempts to solicit banking information under the guise of adding you to a government program for reduced energy bills.
• Claiming that you've overpaid and asking for banking information or credit card information in order to issue a "refund."
• Imposters sending out "smishing" text messages or phishing emails to trick the victim into making a payment or supplying personal and/or financial information.

Utility scammers generally target older persons and non-native English speakers. These scammers will use stolen personal information to run up charges under the victim's name. Often, they will open utility accounts. The FTC received more than 31,000 reports of utility-related identity theft in 2019.

Watch should I look for?

• Threats to cut off service immediately unless a balance is paid.
• Demanding payment by wire transfer, through cryptocurrency, pre-paid debit card, or via gift card - these are methods favorites used by scammers.
• Requests for personal (birthday, social security number, address) or financial (banking, credit card) information.
• Unsolicited calls (or even visits) from someone claiming to be an agent of your utility company.
• Requesting payment on financial statements for utility accounts you did not open.

What can I do if I get called by an imposter?

If you suspect the call/message is not legitimate, here are actions to take and to avoid

Do

• Call the utility company at the customer service number listed on your bill to see if they have tried to contact you or if you are behind on a payment. You can also check the publicly listed company number on their webpage. Do not use the callback number left by an unknown caller.
• Call the AARP Fraud Watch Network Helpline: 877-908-3360.
• Report it on AARP’s Scam-Tracking Map.
• Report it to the Federal Trade Commission (FTC).
• Call law enforcement once threats are made.
• Remain calm. Scammers use social engineering to frighten and/or intimidate their victims into providing personal or financial information.
• Understand how utility companies operate. Utility companies will not request personal information from you over the phone, nor will they cut off services without considerable advance warning.
• Familiarize yourself with your utility contract and keep track of your billing history.
• Notify your utility provider if you have been approached by an imposter.

Don't

• Do not provide any personal or financial information to a caller you do not know.
• Do not click on links in a utility-related text or email unless you're certain it is from your utility company.
• Do not believe the caller. An imposter will try to convince their victim that their water or power will be cut immediately unless payment is made. In reality, if you are behind on payments, your utility company will send you, at least one, delinquent balance notice and provide you with a future shutoff date in the absence of payment.
• Do not provide payment in the form of prepaid cards, gift cards, cryptocurrency, or wire transfers to anyone who contacts you in regard to utility matters.

How can I confirm the legitimacy of contact from my utility company?

• Always verify your account status before making any payment.
• Ask for identification or proof of identification.
• Familiarize yourself with reported scams in the area.

Have you seen this scam?

If you or someone you know has been a victim to a utility scam, immediately file a complaint with the FTC. This can be done either online or at 877-382-4357. You should then report it to your state’s consumer protection office or utility commission.

If an unauthorized utility account has been opened in your name, call the National Consumer Telecom & Utilities Exchange at 866-349-5185 to get a copy of your account history, dispute inaccurate content, and even put a freeze on the report.

Going forward

Utility scams are continuing to grow more sophisticated and more convincing. In order to stay ahead of the curve and avoid potential utility scams, the following is recommended

• Sign up for Watchdog Alerts.
• Utilities United Against Scams (UUAS) offers detailed information on utility-related impostor cons on its website and in its Consumer's Guide to Impostor Utility Scams.
• Take steps to block unwanted calls or messages.
• Tell your friends, family, and coworkers about utility scams so they can protect themselves. When people hear about scams, they are more likely to avoid them.

Don't allow yourself or someone you know fall victim to a utility scam. Share this article to help others know what to do should they receive a suspicious call or message from a utility provider.

If you would like to discuss your business needs please contact us to arrange a consultation. To speak with attorney Ra’na Heidari in confidence, please call our office at (864) 699-9801 or via email at [email protected].

This post is not legal advice, and does not establish any attorney client privilege between A Business Law Firm, LLC. and you, the reader.