How To: Recognize Utility Scams
Utility scams, unfortunately, are on the rise. Whether they’re posing as representatives from utility companies or salespeople selling worthless products that claim energy savings, these scammers might contact you by phone, through email, on social media, or show up at your front door.
The more you can learn about these cons, the less potential there is for being scammed.
Scams on energy-saving devices
Whether sold on Facebook, through a random email, or a solicitation at your front door, one of the latest scams is products that claim to reduce or even eliminate your power bill by plugging in devices around your home. The fact is, there is nothing that you can plug in that will reduce your electricity usage and lower your household power bill.
The marketing for such devices makes them seem capable of meeting their claims. Additionally, these devices are often found on mainstream online marketplaces and retailers, increasing their appearance of legitimacy. But the truth is, they are not legitimate.
Such “energy-saving” devices go by many names and will often even change names to avoid the backlash that comes when customers feel ripped off. Some of the product names CREC has heard about from members include “Stop Watt,” and “Miraclewatt.” Regardless of the name, they all have a similar claim that if you buy and plug these devices into outlets around your home, they’ll balance or clean the power, thus saving you money. A vital part of this claim is that it takes time for the savings effect to be noticed, which coincidentally takes you out of the return period and leaves you stuck with a worthless device.
Here are a few ways to spot this kind of scam:
- Too good to be true. If it sounds too good, it probably is. Overblown promises of big savings are just that … and are designed to separate you from your money.
- Read the reviews. Many of these devices will have bad reviews from those who were swindled. Low review counts are also a red flag.
- Long-term promises. The devices claim to work “over time” … just long enough to cover the return period, making it difficult if not impossible to get a refund when they don’t fulfill their promises.
- Bad grammar/typos in ads or emails. Misspelled words, typos, broken sentences, and lack of punctuation in the product listing are cause for doubt. And always check the email address of the sender. It might look similar to the URL of a legitimate business or utility but not quite right – i.e., cleanenergy@B3$TBuy.com. This also applies to suspicious email communication in another common type of scam – threats to disconnect if you don’t pay.
Other common energy scam tactics
It’s important to understand the difference between someone trying to scam you and legitimate communication from CREC about your bill. If your account is in danger of disconnection, CREC will notify you – there will be a notice printed on your bill, you will receive either an automated or personal phone call prior to disconnection, and yes, you may be asked to verify your identity (via information that we already have) to ensure CREC is talking with the correct person. It is possible that CREC representatives
will come to you in person to collect if you are about to be disconnected, but they will be in CREC uniforms and will be driving a cooperative vehicle. Always ask for identification if you’re not certain.
If someone is trying to scam you, here are some specific tactics they may use:
- They will insist on payment or funds transferred through a pre-paid money card. CREC will not demand this type of payment. It is up to you how you wish to pay your bill.
- They will ask you for banking information. The scammer informs the member they were selected to receive funds from a federal or state program to help pay their utility bills and asks for personal information such as bank accounts and routing numbers.
- Suspicious utility worker. A scammer dressed as a utility worker may knock on your door and offer a home walk-through energy audit. Thieves often use this ploy to gain access to a home or to learn the layout for a future burglary.
If in doubt about any contact related to your relationship with CREC, whether by phone, email, or in person, call CREC directly using the number on your bill to verify your account status and any of our contact with you about it.
If you have any questions or concerns, please do not hesitate to contact us. Stay vigilant and protect yourself from utility scams. For more, visit Utilities United Against Scams