Utility Scams: How to Spot and Stop Them

Common Utility Scams and How They Work

Scammers continually find new ways to impersonate trusted organizations. Here are the most common types of utility scams in 2025—and what to watch out for.

1. Disconnection Scam

This is the most common type of utility scam. You receive a call, text, or email claiming your power, gas, or water will be shut off immediately unless you make a payment.

The message might sound convincing, even displaying your utility’s name or logo, thanks to caller ID spoofing or fake email templates. The scammer often demands instant payment via prepaid debit card, gift card, wire transfer, or cryptocurrency, claiming this is the “fastest way” to avoid disconnection.

What’s really happening: Utilities never disconnect service without multiple written notices, and they never demand immediate payment over the phone. The goal of these scams is to create panic so you’ll act before verifying.

2. Fake Repair or Replacement Fees

Another common scam involves someone calling or visiting your home pretending to be a technician or contractor for your utility company. They claim a piece of equipment, such as your gas meter, furnace, or water heater, is damaged or unsafe and needs an immediate repair or replacement at your expense.

In reality, legitimate utilities schedule maintenance in advance and do not require on-the-spot payment. These scammers count on your desire to protect your home and family to push you into paying quickly.

3. Bogus Bills

You might receive an email or letter that appears to be a legitimate utility bill, complete with your provider’s logo and realistic formatting. The scammer’s objective is to get you to click a link, download an attachment, or send payment to a fraudulent account.

These fake bills are a form of phishing. Clicking the links can expose you to malware or lead you to a counterfeit website that collects your login credentials and financial information.

Cybersecurity experts warn that phishing-based utility scams are growing more sophisticated, using convincing AI, fake websites, and malware to capture login credentials and payment data. Bitdefender’s analysis of recent utility scam tactics outlines how scammers exploit fear and urgency to drive these attacks.

Always double-check your billing statements by logging into your account through your utility’s official website—not through links in emails.

4. Overpayment or Refund Scam

In this scenario, a scammer contacts you, claiming you accidentally overpaid your utility bill and that a refund is being processed. They ask for your bank account or credit card information “to issue the refund.”

The truth: once you share your financial details, the scammer uses that information to steal funds directly from your account. Utilities issue refunds through official methods—usually a credit on your next bill or a mailed check—never through random phone calls.

5. Door-to-Door Utility Scams

Door-to-door scams can take several forms. A person may:

• Pretend to be a utility employee needing access to your home to “inspect” a meter or line
• Claim to represent a new energy provider offering a “limited-time rate”
• Pressure you to sign a contract or share your current bill

In deregulated states that allow Energy Choice, unethical salespeople may use these tactics to switch you to a different electricity provider without your consent—a practice known as slamming. Others may pose as legitimate technicians demanding money for fake services or “restoration fees” after an outage.

Legitimate providers will always schedule visits in advance, carry proper identification, and never require immediate payment.

6. Fake Federal or Government Programs

Scammers sometimes impersonate government agencies, claiming that you qualify for a new federal program designed to lower your utility bills. They may send official-looking letters or call claiming they can “enroll” you if you provide your Social Security number, date of birth, or payment to cover a “registration fee.”

No such federal energy relief program requires direct payment or personal information over the phone. These scams are designed to steal both your money and your identity.

How to Protect Yourself from Utility Scams

Awareness is your strongest defense. Utilities across the country continually remind customers to stay alert. Santee Cooper’s recent consumer alert highlights that scammers often increase activity during peak summer months, when energy use is highest. Keep these steps in mind to avoid becoming the next target.

Be Wary of Threats and Urgency

Utility companies do not disconnect service without advance notice. If someone threatens to shut off your power “within the hour,” hang up immediately. Real utilities follow a formal process, sending multiple written warnings before taking action.

Never Give Out Personal or Financial Information

Your utility will never ask for sensitive information, such as your Social Security number, bank details, or credit card number, by phone, text, or email. If someone claims otherwise, it’s a scam.

If you’ve already shared this information, contact your utility and your financial institution right away to report potential fraud.

Don’t Pay with Untraceable Methods

Legitimate utilities do not accept payment through gift cards, prepaid debit cards, cryptocurrency, or mobile apps like Venmo or Cash App. If a caller demands these payment methods, that’s an immediate red flag.

Pay your bill directly through your utility’s official website, mobile app, or authorized payment location.

Call Your Utility Company Directly

If something feels off, hang up and call the utility company using the number listed on your bill or their verified website. Customer service representatives can confirm whether the communication was legitimate.

Do not rely on the number given by the caller or in the email—it may connect you right back to the scammer.

Verify Before You Pay or Let Someone In

If someone shows up at your door claiming to be from your utility company, ask for identification. All legitimate employees carry company IDs with their name, photo, and logo. If you’re unsure, close the door and call your utility to verify the visit.

For additional peace of mind, utilities can usually confirm whether a technician is scheduled to be at your address.

Get a Second Opinion Before Paying for Repairs

If you’re told your furnace, water heater, or another appliance must be replaced immediately, don’t rush into payment. Get a quote from another licensed and reputable contractor. In many cases, scammers exaggerate or invent repair needs to take your money.

Watch for Warning Signs Online

Phishing emails and texts can be challenging to spot, but there are clues:

• Misspelled company names or email addresses that don’t match your utility’s domain
• Generic greetings like “Dear Customer”
• Poor grammar or unusual formatting
• Unexpected attachments or links

If you receive one, delete it immediately and log in to your account directly through your utility’s official website to check your status.

What to Do If You Think You’ve Been Scammed

If you believe you’ve fallen victim to a utility scam, take these steps right away:

1. Contact your utility provider to report the incident and secure your account.
2. Report the scam to your local police department and the Federal Trade Commission (FTC) at reportfraud.ftc.gov.
3. Notify your bank or credit card company if you shared payment details.
4. Change your passwords on any accounts that may have been compromised.

Even if you didn’t lose money, reporting the scam helps protect others in your community. The neighborhood-based social media app Nextdoor is a great way to quickly let others in your community know if a utility scam is making the rounds in your neighborhood, or ask if they have experienced the same suspicious behavior.

Stay Safe and Informed

Scammers rely on confusion and fear—but the more you know, the harder it is for them to succeed. Understanding how utility scams work and how legitimate utilities operate gives you the power to stop fraud in its tracks.

If you ever have doubts, verify before you act. Remember: your utility will never threaten, pressure, or demand immediate payment.