An unexpected call, email, or in-person visit from your utility company threatening to shut off your service immediately is never a good sign. While it’s only natural to panic in such a scenario, it’s important to take a breath, remain calm, and use your common sense and critical thinking skills because this may not be your local utility company at all; it’s a possible utility scam.
Utility scams are scary, confusing, and invasive. Unfortunately, these days they are all too common.
As a longtime trustworthy water utility company, Indiana American Water takes our responsibility beyond providing safe and reliable water and wastewater services. We want to ensure our customers are safe and informed about scams associated with their utility bills and accounts so we can minimize the number of successful scams and stop criminals in their tracks.
Read on to learn everything you need to know about utility scams. Contact Indiana American Water immediately if you think you may have been a victim of a successful or attempted utility scam. Also, check out the71percent.org for more helpful and informative water-related content.
What are Utility Scams?
Utility scams are a type of imposter scam in which a dishonest individual or criminal entity impersonates a utility company, such as an energy provider, natural gas provider, or water company.
These scams can come in the form of a suspicious call or email, in-person door-by-door visit, or even by mail in rarer cases. The majority of utility scams consist of an imposter who threatens to instantly cut off your service if they do not receive a payment on the spot. Legitimate utility companies, from energy companies to water providers, will never conduct business this way.
Even if you are behind on your energy bill payments, you will receive routine statements, as well as several late notices and other forms of communication before you ever get a shut-off notice.
The goal of this claim is for scammers to send you into a panic that prevents you from recognizing the scam so they can quickly obtain large sums of money or sensitive personal information from you. Most scammers won’t bother impersonating official channels for payment. Instead, they’ll request that you wire money through a third-party company, load money onto a gift card or a prepaid debit card, and provide them with the information, or even pay with cryptocurrency.
These payment methods are preferred over providing banking or credit card information because it is harder to track and even more difficult -nearly impossible – to get the money back once it’s gone.
Who’s at Risk of Being Scammed by Utility Company Impersonators?
In short, everyone is at risk of falling victim to a utility scam.
There is a belief among the general public that the elderly are most vulnerable, especially since many modern scams involve new digital landscapes that older generations are less familiar with. However, this is a common misconception.
According to the Federal Trade Commission, while individuals 80 years old and older lost more money per scam than younger age groups, consumers in their twenties reported falling for fewer fraud attempts than those older than 70 years of age.
What can a Scammer do with a Utility Bill?
There are two things utility scammers may gain from a utility-related scam: money and information.
A scammer who is impersonating your water or energy providers may simply be seeking money and will use the service shut-off scam to steal a smaller sum from you in a short amount of time. Other scammers are after your sensitive information.
From obtaining your name, address, social security number, and other personal and financial information included on your energy bills or utility accounts, imposter scams can result in identity theft and compromised bank accounts.
With even small bits of information, a scammer could open credit lines, file a tax return, or sign up for utilities at a different address all in your name, on your dollar.
Common Types of Scammers
Utility scams are diverse in nature, but they typically occur as one of these three common scenarios.
- Phone Scams: Caller ID used to be reliable, but with innovation in communication technology has come new challenges, including identifying the authenticity of callers. A scammer can easily disguise their phone number, either mimicking a local number or the ID of your local utility provider.
- Online Scams: Scams via email are also harder to identify as fake email addresses and hosting is simple to create. Scam emails tend to look like a real utility bill, service disruption alert, or another believable piece of content that leads to a request for your payment information.
- In-Person Scams: While less frequent than they used to be, door-to-door scams still occur. Individuals impersonating utility staffers can even go as far as to dress up in fake uniforms or create branded documents and identification with a fake or modified version of your utility provider’s logos and credentials.
No matter the type of scam, each poses a serious threat to the security of your finances and personal information.
Top Tips to Avoid Being Scammed
It may seem like scammers have all the power – they have unchecked access to technology that makes their “jobs” easier than ever. But things aren’t hopeless. There are many actions you can take to counteract scam attempts and keep you and your information protected.
The best ways to combat utility scams include:
Keep it to Yourself
It’s in the name: personal information is personal. Don’t make a habit of publicly displaying or handing out your sensitive information such as your date of birth, baking or credit card details, account number, or social security number.
Don’t be Afraid to Ask Questions
No one wants to come across as rude, but sometimes it’s necessary to stand up for yourself. Ask suspicious or unexpected callers to provide clarifying information, ask door-to-door utility employees for ID, and don’t be afraid to shut things down or push hard if you’re not satisfied with the answers you receive.
Never Send Money
A reputable utility company will already have some type of payment information associated with your account. While they may ask you to confirm certain details, such as a debit card security code, for security purposes, they will never ask you to provide alternative methods of payment.
If a potential scammer requests odd types of payment, like a reloadable gift card or cryptocurrency, say no and end the interaction as soon as possible.
Do Not Click Links or Downloads from Unknown Sources
If you receive text or email attachments or links from a strange source that you’re unable to verify, play it safe and do not engage. The link could compromise your accounts, while an attachment could infect your personal device with a virus or give hackers access to your systems.
Trust Your Gut
Your instincts are your best defense against utility scammers. When you feel even the smallest bit of doubt about the legitimacy of a utility call, trust yourself. Do not continue the interaction and refrain from making payments or giving out information.
If you suspect the individual you’re communicating with is a scammer, contact your utility provider through a verified medium immediately. If they are unable to confirm that they sent an email, made a call, or sent a representative to your home, you likely experienced a scam attempt.
Report all utility scam attempts to the Federal Trade Commission, and call Indiana American Water or your other utility companies to report the incident. If someone is attempting a scam at your front door, close and lock the door quickly and call 911.
How to Identify a Utility Scammer
We understand it can be difficult to discern if communication is authentic or the work of an experienced scammer. Here are some simple ways to confirm if the person is legit or if you should quit the interaction and call for help.
- Check the email address: You can verify email addresses by comparing them with previous, already verified communication from your provider or by looking for abnormalities in the address, email signature, and formatting.
- Confirm the phone number: If you get a call or email from an unfamiliar correspondent, check the contact information. You can use a search engine to see if the phone number is associated with your utility provider or is part of a known scam network.
- Inspect ID badges: Always ask for identification when a stranger knocks on your door. Every Indiana American Water badge will display the individual’s name, photo, and the company’s logo clearly on the front side.
- Locate the service vehicle: If someone contacts you about your utilities in person, they should be driving an official vehicle. Every door-to-door Indiana American Water employee drives a vehicle with our logo visible on the side.
If there are ever questions about a person’s identity, don’t hesitate to hang up the phone or close the door and contact your company through a trusted medium and confirm any suspicious communication.
What to do if You Fall for Utility Scams
In the case that you do fall for a utility scam, there are some actions you can take to try and fix the situation.
If you reveal personal information, head to IdentityTheft.gov. On this site, you’ll find information on how to react, monitor your credit, and change all usernames and passwords.
If you paid a scammer using one of their unique payment methods, it might be hard to get your money back. If you paid with a debit or credit card, contact the company or bank and file a fraud claim. In many cases, the transaction can be reversed and you can get your money back.
The most important thing to do when you fall for a scam is to act quickly. Fast action gives you the best chance at protecting yourself.
Contact Indiana American Water – Your Trusted Local Utility Company
Indiana American Water is here to help. We want to protect our customers from scammers impersonating our organization. Call our team anytime at 1-800-492-8373 to report a successful or attempted utility scam or to confirm if service work is scheduled in your area.