Is That Utility Bill Legit? How to Identify a Utilities Scam

Utility bill scams are unfortunately common today, but customers can take action to stay safe. They may receive an email or phone call supposedly from the company, demanding an urgent, unexpected payment. It can be all too easy to give in to the pressure.

Customers can avoid falling for tricks like this by understanding how to identify a fake utility bill and spot red flags.

Utility Bill Scam Red Flags

Spotting a fake utility bill starts with knowing the top red flags. Scammers use several tactics to trick victims into giving away money or sensitive information while posing as a company representative.

Threats to Immediately Shut Off Service

One of the most common utility bill scams is a threat of immediate shutoff. Customers may receive a letter, phone call, text or email warning them that they must pay a fee or bill immediately or lose service.

Genuine utility companies will never shut off service without numerous warnings through official channels. For instance, customers will likely receive a letter in the mail each month they don’t pay their bill. Utilities send repeated warnings about unpaid balances before eventually disconnecting service.

No utility company will threaten immediate service shutoff. Customers that pay their bills on time can be fairly certain that any threats are fake. Urgency is an extremely common phishing tactic today, designed to scare victims into making hasty, unwise decisions. Scammers hope immediate retaliation threats will scare people into doing what they want before recognizing the scam.

Demands for Unusual Payment Methods

A fake utility bill will most likely require people to pay using a specific method. This could be a wire transfer, prepaid credit card, gift card or cryptocurrency.

This is a major red flag of a scam. Real utility companies allow customers to pay using their preferred method and typically only accept checks, debit and credit cards. An authentic bill will not demand that customers use one specific payment method.

Scammers do this because normal payment methods are easily traced to ensure safety and transparency. Wire transfers, prepaid credit cards, gift cards and cryptocurrency are far more difficult to trace, making it harder for the scammer to get caught. Crypto has become a favorite tool of hackers in recent years due to the extreme difficulty of tracking transactions.

Unsolicited Calls or Texts

Unsolicited messages are a staple of utility bill scams. They can be tricky to spot since a genuine company may contact customers unprompted. The message’s content gives away whether or not it’s a trick.

For instance, utility companies should never ask for financial or personal information in unsolicited calls, emails or texts. If the message is genuine, the utility representative should not mind if the customer requests to hang up and call the company directly to ensure their safety.

Scam phone calls, texts and emails often attempt to get victims to take action through the original message rather than known channels. For instance, a scammer may threaten a victim if they ask to hang up and call the utility company back directly.

Likewise, scam texts or emails may instruct the victim to “click here” or “use this link.” These links are usually connected to phishing websites or malware downloads.

Mismatched Contact Information

Customers that get an unsolicited email, text or phone call that appears to be from their utility company should always double-check the sender details. If the phone number or email address does not match the contact information on the official website, it is most likely a scam.

For example, real utility company representatives will contact customers using their official email addresses. They will never send emails from Gmail, Hotmail or any other public domain.

Customers unsure if a message is genuine should always contact their utility provider directly. They should hang up and call the official phone number on the company’s website.

New or Strange Utility Fees

Some utility scams attempt to steal money or information from victims by demanding a fee. For example, one known swindle involves a fake reconnection fee supposedly charged after a power outage. The scammer goes door to door pretending to represent the power company while demanding cash payments.

No real utility company will charge customers a fee to resume service after an outage. People asked to pay a new or unusual fee should always exercise caution. They should contact the business directly before paying anything to anyone.

How to Identify a Fake Utility Bill

What if a customer receives a utility bill that looks unusual or suspicious? How do they learn how to identify a fake one? Identification is easier with an understanding of how real companies do billing.

All genuine utility companies have a clear and consistent billing system. This platform is usually connected to their website, where clients can view all the details of their plan, payment history and any outstanding balance. These systems are designed to improve the customer experience, so access is always free and convenient.

The system automates the process of billing customers and displaying their payment information for them. Correspondence will usually come from a connected and automated email account. That means emails from personal or non-company addresses are most likely scams.

Additionally, customers should never reply directly to a supposed utility bill email. The billing system is connected to their account, not specific emails. Someone who logs in on the utility provider's website should see exactly how much money they owe, if any, without clicking email links.

Fake utility bills sent to customers’ emails often feature links that appear to direct them to their online accounts. However, they actually take people to a website that installs malware on their computer or a fake website where information can be stolen.

Fake Utility Bills in the Mail

Letters are a less common form of fake utility scams, but they’re still out there. These bills may have a strange amount due on them, an unusual return address or a link to a “payment” website unaffiliated with the company. People should always double-check with official personnel before responding to a suspicious paper bill.

Email and paper fake utility bills often contain typos, strange wording, unusual formatting and a modified company logo. The font or paper may even be different than usual.

Victims of Utility Scams: What to Do

Anyone who thinks they may have accidentally fallen victim to a fake utility bill scam should take action as soon as possible. Several steps can help law enforcement and protect other customers.

The first step is for victims to contact the utility company to report the incident. They should provide as many details as possible, including screenshots, phone numbers, email addresses or other content the scammer left behind. Next, contact the bank or credit card company to warn them that money or sensitive information may have been stolen.

Victims of utility scams should also report the incident to law enforcement using the official FTC fraud reporting website. Additionally, state attorneys general can also help with scam cases. People can use the official Consumer Protection map to find the contact information of their state’s office.

Finally, victims should use word-of-mouth. They can warn neighbors, friends and family about the utility scam so they can keep an eye out for any suspicious activity or fake bills.

Avoiding Fake Utility Bill Scams

Utility scams are unfortunately common today, particularly online and over the phone. Customers can protect themselves by learning how to identify fake bills and identifying red flags.

People should never react to a message from a utility company recklessly, impulsively or out of fear. They should investigate and contact the business directly. This simple step can go a long way toward thwarting scams.