A call from your "electric or gas company": shutoff threats, fake refunds, and rate switches

A call from your "electric or gas company": shutoff threats, fake refunds, and rate switches

"This is your electric company. Your account is past due, and a crew will disconnect your service within the hour unless you make a payment now." Or a friendlier version: "You've been overcharged, and we can apply a refund or a lower rate. I just need your account number and a copy of your bill." These calls imitate your utility, or a company that claims to work with it. Utilities don't demand immediate payment by gift card or crypto, and you can always check your account by calling the number on your bill.

How does this scam work?

In the US, there are two main versions:

• The shutoff threat. A caller, sometimes with a spoofed caller ID showing your utility's name, says your power or gas will be cut off within an hour or two because of an unpaid balance. To avoid it, you must pay immediately by prepaid card, gift card, a payment app, cryptocurrency, or at a Bitcoin ATM. Small businesses, such as restaurants at lunchtime, are frequent targets.
• The "lower rate" or "refund" pitch. In states where you can choose your energy supplier, a caller or door-to-door salesperson says they work "with your utility" and offers savings, a rebate, or a "government program." What they really want is your account number. With it, they can switch you to a third-party supplier, sometimes with an expensive variable rate, without your clear consent.

Other variants include fake "smart meter replacement" fees, fake utility workers at your door, and texts or emails with links to "pay your overdue bill."

How can I tell the call is fake?

• Threats of disconnection within hours. Utilities send written notices before shutting off service for nonpayment, usually well in advance.
• Demands for unusual payment methods: gift cards, prepaid cards, crypto, or payment apps.
• They ask for your account number to "verify" you or to "apply a discount." Your utility already knows it.
• They claim to be "partnered" with your utility or with a government program you've never heard of.
• Caller ID shows your utility's name. That can be spoofed.
• Pressure to decide now, or to sign a form on a tablet at your door.

What do I do during the call?

1. Don't pay and don't share your account number, card details, or a photo of your bill.
2. Hang up and call your utility using the number on your bill or its official website. Ask whether there's really a past-due balance or a pending disconnection.
3. Don't let anyone into your home without verifying their identity with the utility, even if they wear a uniform or vest.
4. If they offer a cheaper rate, don't agree to anything by phone. Ask for the offer in writing and compare it calmly.

Utilities United Against Scams, a group of US and Canadian utilities, has more information on these impostor scams at utilitiesunited.org.

What if I already gave my details or accepted the switch?

• If you paid: call your bank or card issuer using the number on your card and report it as fraud. If you paid with gift cards, contact the issuer right away with the card numbers and receipts.
• If you gave your account number: call your utility and tell them. Ask them to note your account and alert you if a supplier switch is requested.
• If you were switched to another supplier without your consent: contact your utility and the new supplier and ask to cancel the switch. In many states there's a cancellation period after enrollment. If it's not resolved, file a complaint with your state's public utility commission, which regulates energy suppliers.
• Check your next bills for a new supplier name or unusual charges.
• Save everything: the phone number, the name of the company, and any documents.

Frequently asked questions

Can my utility really cut off my power without notice? Utilities follow state rules on disconnection, which generally require written notice in advance. A call threatening shutoff within the hour, with payment by gift card, is a scam sign. Check by calling the number on your bill.

A salesperson came to my door from an "energy company." Is that a scam? Not always: in some states, third-party suppliers legally sell door to door. But you're never obliged to sign on the spot. Don't show your bill or account number, and compare the offer later.

What's my utility's real number? It's on your paper or online bill and on the utility's official website. Never use a number given to you by the caller.

Where do I report it?

• To your utility, so it can warn other customers.
• To the FTC at ReportFraud.ftc.gov.
• To your state attorney general or public utility commission, especially for unauthorized supplier switches. USAGov explains where to report a scam.
• In NoCall: report the number in the spam numbers directory.

In short

Fake utility calls rely on fear of losing power or the promise of savings. Hang up, call the number on your bill, and never pay with gift cards or share your account number. If you were switched without consent, contact your utility and your state's utility commission. And report the number in the NoCall spam numbers directory to warn your neighbors.