Types of utility scams
Scams come in many forms, but the goal of all scams is similar, they target victims in order to steal money and gather financial or personal information. Examples of utility scams include:
- Threats of disconnection: where the scammer typically urges immediate payment or disclosure of personal/financial information
- Solar scams: where the scammer typically pressures people to sign expensive contracts in return for the promise of free solar panels, grants, or $0 electricity bills
- Text/E-mail/Phone: where the scammer pretends to be a utility company in order to receive payment or personal/financial information, text and emails scams will typically have malicious links
- Fake bills: where the scammer pretends to be a utility company in order to receive payment or personal/financial information
- Equipment repair: where the scammer falsely identifies faulty equipment and pressures people to repair the equipment immediately in order receive payment or personal/financial information
- Online ads: where the scammer pretends to be a retailer, typically using malicious links or where the scammer pretends to guarantee rebates to receive personal/financial information
Spotting utility scams
Scams often have red flags and warning signs, including:
- Pressure to act immediately
- Threatening language such as immediate disconnections or involving police
- Asking for payment in unconventional methods
- It seems too good to be true
- Contracts are vague
- Incorrect URLs
- Incomplete websites/websites with grammatical or spelling errors
- Recently created websites
Note: In Alberta utility companies cannot sell their services door-to-door but there is no restriction for solar companies.
How consumers can protect themselves
Never act immediately
If consumers are contacted by a utility or solar company, they never need to agree to anything immediately. Reach out and verify details independently. If consumers are contacted by phone, text, or e-mail, they should not reply directly. Many scammers will spoof phone numbers and e-mails, so they appear legitimate, replying to these directly only furthers the scam. Find the contact information for the utility company separately and reach out.
Use caution when looking at websites, links, and e-mails
When scammers imitate legitimate companies, they will often use realistic websites, links, and e-mails. To see if these are legitimate, consumers can:
- Check the URL - scammers will create similar website addresses, but there will be spelling errors, random punctuation, or have a different domain. Never click on links or attachments from unknown senders. Consumers can hover over embedded links to see the URL before clicking it.
- Check the sender's email address - if consumers receive an email, they should look at who has sent the email. Most utility companies will have an email like: name@utilitycompany.ca. Scammers may have similar email addresses, but they will likely use free domains like Hotmail, Gmail, or Outlook. Their email addresses may have spelling errors or unnecessary punctuation/letters.
- Check the content - scammers will often copy and paste sections from legitimate websites, this may make formatting appear weird. They may also develop their own content, but as these websites and emails are created quickly, there are often spelling and grammatical errors. E-mails may use inappropriate language as well, such as calling recipients "dear" or "love".
Don't give out personal or financial information
If consumers receive unsolicited communications, they should never give their personal or financial information.
Scammers can use this information to gain access to accounts or build profiles for other scams.
Don't pay for anything without checking
Scammers will try to pressure consumers to act immediately. They often threaten utility disconnection or involving police, which makes it seem necessary to solve the issue instantly.
Retailers will never ask for immediate payment. If consumers are legitimately overdue on their account or facing utility disconnection, they will receive a bill and/or a pending disconnection notice with a date to pay by. Utility companies will also never ask for payment in the form of gift cards or bitcoin.
If a "retailer" reaches out and demands immediate payment, consumers should take their time to verify it is their retailer. Contact the retailer's customer service department indicated on the utility bill and do not respond directly to the demand. If the retailer offers online billing, consumers can also verify if they owe money there.
Beware of too good to be true promises
If something seems too good to be true, it likely is.
Solar scams often make promises such as free solar panels, large grants to cover costs, or the ability to reduce utility bills to nothing. These scams may also approve consumers for solar projects immediately and get them to sign vague contracts with large sign-up fees. However, it is important to keep in mind:
- Solar panels are very expensive and will never be free.
- Grants are available; however, they are not available to everyone and acceptance is conditional.
- Even with the addition of solar panels, utility consumers will often still have to pay utility bills as transmission and distribution charges will not go away.
- An assessment of the consumers' property will need to be completed. A legitimate solar company will be able to let consumers know if solar is an option for the property, and they may be able to help consumers find micro-generation plans. The assessments will be completed before consumers pay for the solar panels.
What can consumers do if they're a victim
It is important for consumers to report utility scams to help protect themself and others.
If consumers were targeted but not victimized, they can contact the Canadian Anti-Fraud Centre. Consumers can submit reports online or by calling 1-888-495-8501.
For consumers who are a victim of a utility scam, it is important to contact the Canadian Anti-Fraud Centre. They should also report the scam to their local police service. Consumers can also:
- Contact their financial institution
- If the scam took place through a website, social media, or online classified pages - report them to get them removed
- Monitor accounts through credit bureaus such as Equifax and TransUnion and flag them if necessary
