Utility Scammers Are Threatening to Shut Off Your Heat—Here’s How to Protect Yourself
Officials warn fraudsters are using fear tactics to steal your money—here's what to watch for
Picture this: You receive an unexpected phone call from your utility company telling you that you’re overdue on your payments. It gets worse: They add that if you don’t send them the money immediately, they will turn off your heat. Before you panic, take a breath—it’s likely a scam! Several variations of these concerning schemes are popping up around the country, and officials want you to be prepared. Find out more about how to avoid utility scams and the warning signs that can indicate something isn’t right.
What is the utility scam?
During colder months, heating costs weigh heavily on Americans’ minds. That creates a window of opportunity for scammers who pose as utility company representatives.
The common tactics? Threaten people with fake warnings that their heat is about to get shut off, make promises about refunds that don’t exist or offer too-good-to-be-true deals to slash heating bills.
Whatever method the fraudsters choose, they all follow a similar playbook: get victims to act quickly and unknowingly give away sensitive information, money or both. Here’s exactly how they pull it off—and how you can stop them in their tracks.
How the scam works
Though utility scams are not new, two recent variations have officials sounding alarm bells. The first one is incredibly concerning as it capitalizes on a person’s fear—especially when temperatures are frigid.
The scammer’s approach: Contact potential victims by calling, texting, emailing or even showing up at their residence. Then explain that they are with your gas or electric company and that you are not in good standing as a customer.
They may say something like, “‘we’re going to shut off your utilities right now,’ and that’s typically a red flag,” Alyssa Parker of the Better Business Bureau of Eastern Carolinas told ABC 11. “You’re not going to get something that is so immediate.”
The next step, according to the Federal Trade Commission (FTC), is providing the “necessary” payment to ensure your heat stays on. The scammers will generally tell you to wire the money, provide a reloadable gift card or make the payment using cryptocurrency. All of these methods are hard to dispute or track, making it nearly impossible to recover your money once it’s gone.
Watch out for overpayment scams
Another utility scam that should be on your radar? Callers who say you overpaid on your utility bill and you are entitled to a refund, reports WKYT.com.
This scheme is particularly clever because it doesn’t rely on fear—instead, it uses the promise of money coming your way to lower your guard. In this case, they will say they need banking account information to be able to issue you the refund. But first, they need to convince you this isn’t just a scam.
“They then give the routing number of the bank the member banks with,” reads a Facebook post shared by Jackson Energy in Kentucky. “Routing numbers for all banks are public information, so these scammers are using this to try and convince them that they are legitimate.”
Once they have convinced you to give them your account number—the private information they actually need—they’ll use it to drain your hard-earned money from your account.
What to do if you’ve been victimized
If you realize you’ve been caught up in a scam, don’t be hard on yourself—these fraudsters are professionals at deception. The important thing is that you’re taking action right now to protect yourself.
- If you shared banking information: Contact your bank or credit union immediately. They can monitor your account for suspicious activity and may be able to freeze or reverse unauthorized transactions.
- If you sent money: Report the payment as fraudulent right away. Reach out to the appropriate channels based on how you sent money—whether that’s the wire transfer company, your credit card company, or the payment app you used.
Finally, you should report the scam to your utility company online, the FTC and your state attorney general. This crucial step allows authorities to track the criminals and warn others about the scam so they can protect themselves.
How to avoid utility scams
The good news? Though these schemes can do serious financial damage, it’s easier than you think to stay safe! If someone reaches out to you claiming to be an employee of your local utility company, pause before responding. Instead, reach out to your utility company directly via confirmed communication channels.
“Call the company using the number on your bill or the utility company’s website, even if the person who contacted you left a call-back number,” advises the FTC. “Often times, those call-back numbers are fake.”
An official representative will be able to tell you if you owe any money or if you overpaid on your last bill. Then you can pay as you normally would instead of the unsafe options above.
The most important thing to know? Utility companies won’t ask you to pay in a suspicious manner, and they certainly won’t demand money immediately without prior warning.
Anyone asking for those types of payments—or requesting financial information over the phone—is simply a bad actor looking to take advantage.
Remember: Your instincts are powerful, and now you have the knowledge to back them up. If something feels off, it probably is!
Conversation
All comments are subject to our Community Guidelines. Woman's World does not endorse the opinions and views shared by our readers in our comment sections. Our comments section is a place where readers can engage in healthy, productive, lively, and respectful discussions. Offensive language, hate speech, personal attacks, and/or defamatory statements are not permitted. Advertising or spam is also prohibited.
