How to Recognize and Avoid Utility Scams

Utility scams are on the rise, targeting unsuspecting homeowners and businesses with alarming speed. Scammers are getting smarter, using deceptive tactics to impersonate utility companies, leaving victims confused, frustrated and vulnerable.

Learn the steps to take in case you’re targeted and discover proven strategies to protect yourself. Plus, find out how AAA’s ProtectMyID can help add an extra layer of defense against these scams. 

Common types of utility scams

Utility scams come in various forms, but they all aim to deceive and extract money or personal information. Here’s a breakdown of their most common methods. 

1. Phone scams

The phone rings, and someone on the other end claims to be from your utility company. They state that your bill is overdue, and if you don’t pay immediately, your utilities will be disconnected. This high-pressure tactic aims to panic you into acting quickly, often by transferring money or sharing sensitive financial information.

• Red flags: Scammers may sound professional and even provide fake employee names or badge numbers. Sometimes, they use caller ID spoofing to make the call look legitimate.

• The goal: They want you to pay via wire transfer, prepaid cards or mobile payment apps, making the funds nearly impossible to trace. 

2. Door-to-door scams

A friendly “utility worker” shows up at your door, saying they need to inspect your meter or offer you a better rate on your services. They might demand payment on the spot for fake equipment upgrades, overdue bills or bogus service agreements.

• Red flags: These scammers often lack proper identification or uniforms matching your utility company’s branding.

• The goal: Gain access to your home for theft or lead you to provide personal details and upfront cash payments. 

3. Online and text utility scams

Phishing emails and fake utility websites are becoming increasingly sophisticated. These emails often appear to come from your utility company and include links or attachments asking for immediate action, like updating account information, paying a utility bill or claiming “rebates.”

• Red flags: Redirecting victims to fraudulent websites to steal login credentials or financial details.

• Danger zones: Links with typos or domains that look almost identical to official utility company websites are major warning signs.

• The goal: To trick recipients into sharing sensitive information like passwords or payment details for identity theft or fraud.

Steps to take if you suspect a utility scam

What should you do if that nagging feeling tells you something’s off? Follow these steps immediately to minimize risk and stay safe.

1. Verify independently: Call your utility company directly using their official phone number. Never rely on the details provided by the supposed utility worker or email sender.
2. Don’t make rash payments: Authentic utility companies won’t demand instant payment, especially through untraceable methods.
3. Keep records: If a scammer contacts you, take note of their name, phone number or any identifying details.
4. Report the scam: Contact your local utility company, the Federal Trade Commission (FTC) or the Better Business Bureau to log the incident.
5. Alert authorities: If the scammer visited your home or used threatening language, notify your local police department. 

How to protect yourself from utility scams

“An ounce of prevention is worth a pound of cure.” Here are practical steps to keep yourself and your loved ones safe.

1. Know your utility company’s policies: Familiarize yourself with their payment methods and procedures. Most utilities won’t request payment via prepaid gift cards or crypto.
2. Authenticate visitors: Genuine utility workers carry identification. Always verify their credentials before letting them into your home.
3. Stay vigilant with technology: Invest in strong email security settings to flag phishing attempts before they make it to your inbox.
4. Sign up for AAA’s ProtectMyID: AAA Members receive complimentary access to ProtectMyID, a powerful tool to protect against identity theft. By enrolling, you’ll benefit from identity monitoring, alerts and support should your information be compromised. It’s an easy and reliable way to safeguard your personal details. 

Utility scams may be widespread, but armed with the right information, you can protect yourself and your household from falling victim. Recognize the warning signs, verify every communication and never rush into payments or decisions under pressure. Stay safe, trust your instincts and spread awareness within your community.