How to Avoid Utility Scams for Businesses

Paying your utility bill can be stressful, with different rates, due dates, and fees throughout the year. This is even more true for business owners whose utility bills tend to be complex and involve a lot of administrative work to keep track and stay on top of.  

There is a growing group of people who know just how complex utility billing is: scammers. Scammers understand that most consumers do not have full clarity about their bills and utility payment systems, and they take advantage of this by tricking even savvy consumers into forking over cash unnecessarily.  

For businesses and homeowners, utilities are a vital part of everyday life and operations. The combination of this importance and the murkiness of utility billing make it the perfect playground for lying and theft.  

Typically, utility scams make the stakes extremely high, threatening to shut off the electricity, gas, or water unless you pay them ASAP. This naturally causes consumers to feel stress and pressure to react immediately, without doing thorough research to check when they last paid their bills or how their utility company normally handles overdue payments.  

Losing money to a scam is a horrible experience. Here are a few ways to look out for frauds and to avoid getting conned by these growing traps.  

1. Know that real utility companies will not insist on immediate payment.

   It is possible your utility company could call you about a past due payment. However, if they do, they will not insist on paying over the phone. Typically, they will send you to their trusted website or other standard payment method. Be especially suspicious if a caller requests a wire transfer, crypto, prepaid card, or other unusual payment type. A proper utility company will never make this type of request. Similarly, if someone calls to say you have been overpaying and that they need your bank information to pay you back, this is (unfortunately) a scam. Overpayments do happen, but refunds typically manifest as account credits, not cash.  

   
   
2. If you are not sure, call the company yourself.

   Oftentimes, utility scammers are experienced and can be incredibly compelling. They may say something that by coincidence is true, like you may be a bit behind on bills. Your caller ID may even show the name of a real utility company. However, none of these things guarantee legitimacy. If you get a call and you are not sure if it is a scam, hang up the phone. Go to the utility company’s website and call the number listed there for more information. Even if it was your actual company, you will not face any consequences for hanging up, so it is always best to play it safe. 

3. Be wary of someone who shows up in person to talk about your utilities.
   Utility companies will not send someone to your place of business or home to collect money. Ever. So, if someone shows up demanding payment, know it is a scam. However, there is another utility-related scam which involves fake sales. Not every in-person utility salesperson is a fraud, of course, but there are a few telltale signs to look out for.  

   • Are they able to show you a legitimate company ID? If not, they likely are not a real representative, even if they have a uniform or other branded items. 

   • Are they asking to see your utility bill? This is a red flag. Your utility bill can contain sensitive information, so never show it to a stranger.  

   • Are they pressuring you to sign up on the spot? If they offer special rates only now before you can read fine print or say that you have no choice because of your landlord, they are likely trying to get away with something. 

   Long story short, be careful if someone claiming to work with a utility company shows up at your business or home. Use common sense and an abundance of caution, and never sign or pay before you have gone away and done more research.   
   
   
4. Real professionals will not threaten you.
   Whether in person or over the phone, an actual employee of a utilities company will not threaten you or get angry about your bills, no matter how overdue they might be. Threats and emotional reactions are a sign someone is trying to intimidate or manipulate you into paying. Do not let yourself be swindled by this behavior. 
   
   
5. Report scams. 
   Utility scams are out of control, and most of us know someone who has encountered this type of phone call or maybe even fallen victim. If you experience this, one way to help is to report it to your utility company, the Federal Trade Commission, or your state’s attorney general, in charge of consumer protection. The more people report their experiences, the more these organizations can spread awareness about specific phone numbers and tactics to be wary of—and hopefully over time shut down these criminal operations. 
   
   

6. Outsource your commercial energy management to avoid risk.

   Paying utilities is a complex ordeal, and scams make it even more difficult. If you outsource your business’s energy management to an energy-as-a-service company like Budderfly, you no longer have to worry about this. In addition to improving businesses’ energy efficiency, we also take over their utility billing and instead provide them a streamlined single monthly bill for ease of payment—and no worries about scamming. Contact us to learn more about simplifying your utilities and upgrading your energy equipment at no cost.