Utility Shutoff Scams: Why a Threatening Call Is a Red Flag
Winter bills can already feel stressful. That is exactly why scammers like to pretend to be your utility company. The call sounds urgent: pay now, or your power or gas will be shut off today.
It is a scam. Here is how it works, what to watch for and what to do instead.
How the Scam Works
According to the Federal Trade Commission (FTC), the caller says you owe money and that you can avoid a shutoff and extra fees if you pay right away. Some callers text or email a barcode and tell you to pay it at a store such as a drugstore or big-box retailer. Others ask for gift cards, a wire transfer, a payment app or cryptocurrency.
AARP adds that a caller may claim you have only minutes before service is cut off. The AARP article quotes a utility industry expert who says a utility company will never call and tell you they are going to shut off service in minutes.
Red Flags
- An unexpected call, text or email about an unpaid bill.
- A threat that service will be shut off very soon.
- A demand to pay in a way that is hard to undo: gift cards, cash reload cards, wire transfers, payment apps, barcodes, QR codes or cryptocurrency.
- A request for your bank account or card details over the phone or by email.
- Pressure not to hang up or to keep the caller on the line.
The FTC says real utilities don’t create this kind of urgency. They offer payment plans, and they don’t send you a barcode to take to a store.
What to Do Instead
- Stay calm. Hang up, or don’t reply to the text or email.
- Look at your latest paper or online bill for your utility’s phone number. Do not use a number the caller gave you.
- Call that number and ask about your account. If you really do owe something, ask about payment options.
- Never give out banking details unless you placed the call to a number you know is real.
- Tell a friend or family member. Sharing the warning helps others.
If You Already Paid
It happens to smart, careful people, and it is not your fault. Act quickly.
- Contact the company you used to send the money, such as your bank, card company or payment app. Tell them it was fraud and ask if the payment can be reversed.
- Tell your real utility company so they can note your account.
- Report it to the FTC at ReportFraud.ftc.gov.
- Consider calling the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311) for help with next steps.
For more on what to do after sending money, see our guide, Paid a Scammer? What to Do Right Away.
If Your Heating Bill Really Is a Struggle
Help may be available. Our sister site explains one program in plain English: Heating Bill Help: What LIHEAP Is and How to Apply. Always contact your utility directly using the number on your bill.
More on Seniors Tips
- Gift Card Scams: Why Only a Scammer Asks You to Pay This Way
- Government Impostor Scams: How to Spot Fake Social Security, IRS, and Medicare Calls
