Among the scams causing the most harm to consumers is a scheme in which an imposter pretends to be from a utility company and tells the victim their power is about to be disconnected for non-payment, unless the victim makes an immediate payment.
During National Consumer Protection Week, utility companies around the country are working with the Federal Trade Commission to raise awareness of this scam. In 2024, Pacific Gas and Electric alone reported over 26,000 scam attempts, with customers losing $646,000 to fraudsters impersonating the utility company.
Unfortunately, these figures likely represent only a fraction of the actual scam attempts, as many incidents go unreported. The trend has continued into 2025, with over 1,700 scam reports in January alone, resulting in nearly $22,000 in losses.
Ron Rose, PG&E's lead customer scam investigator, said scammers will attempt to create a sense of urgency by threatening immediate disconnection of your utility services if you don't make immediate payment.
He said PG&E, like other utility companies, will never ask you for financial information over the phone. He points out that a demand for an unusual method of payment, such as pre-paid debit cards or money transfer services like Zelle, is a sure sign of a scam.
Businesses are also targets
Small and medium-sized businesses are particularly vulnerable, with over 1,200 reports of scam attempts targeting these customers in 2024. Scammers exploit business owners' urgency to maintain operations, often during peak business hours.
Signs of a utility scam include:
Threat to disconnect: Scammers may aggressively demand immediate payment for an alleged past due bill.
Request for immediate payment: Scammers may instruct the customer to purchase a prepaid card then call them back supposedly to make a bill payment.
Request for prepaid card: When the customer calls back, the caller asks the customer for the prepaid card's number, which grants the scammer instant access to the card's funds.
Refund or rebate offers: Scammers may say that your utility company overbilled you and owes you a refund, or that you are entitled to a rebate.
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