Protecting Your Customers From Utility Scams

There's a new hero in town: Utilities United Against Scams. In the past year, this national organization made up of more than 100 electric, gas, and water utilities, has successfully worked to disconnect more than four dozen 1-800 numbers tracked to scam artists and swindlers who pose as utility representatives threatening to shut off a customer's service unless bills are paid. The organization has also partnered with law enforcement and created materials and resources for utilities to use to warn their customers.

Why are these warnings so valuable?  A recent report published by the Better Business Bureau (BBB) found that people are particularly susceptible to utility scams. This, combined with a median financial loss of $500 — quite a sum for many customers of small systems — means that there is no incentive for this type of activity to decrease. In fact, according to a study by Hiya, utility scams rose 109 percent in 2016 alone. 

While only a handful of mostly larger water utilities are on the roster at this time, the AWWA is encouraging additional water utilities to sign up for a free membership in Utilities United Against Scams in order to pool resources with other systems to fight this growing problem and amplify public outreach. The organization also hopes to create a centralized database for fraud committed against utility customers that could prove useful to water systems of all sizes. 

To be sure, it is important for organizations such as UUAS to address concerns specific to water utilities, concerns that are different from the typical payment scams common to other utilities: mainly, imposters trying to gain access to homes and businesses with the intent to rob by claiming the need to check meters, test water or check pipes. The Middlesex Water Company advises customers to ask for a photo ID before allowing anyone into their home and Fraud.org suggests customers take these steps to protect themselves: always call the utility directly, never pay by wire transfer or prepaid cards and never give out personal information. 

In attempt to raise awareness of these pressing issues, UUAS has created the Consumer Guide to Imposter Utility Scams to educate leaders and consumers about the types of scams that are occurring across the country (phone, in-person and internet) as well as provide tips to share with community members to avoid scams and contact information for assistance in case a customer becomes a victim. 

Are you interested in finding out more about the utility scams that are showing up in your community? Check out this interactive Scam Tracker map from the Better Business Bureau. And customers aren't the only ones who can fall prey to crafty scammers: according to this article from Idaho Rural Water, there was an outbreak of scammers in 2012 tricking rural water operators into receiving "free samples" of water treatment products that they were later charged for!