Utility Shutoff Threat Scam
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Utility shutoff scams create a false sense of urgency, threatening to disconnect services like electricity or water to trick victims into making immediate payments, with one major utility, PG&E, reporting customers lost nearly $650,000 in 2024 alone.
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How It Works
1
A scammer contacts you by phone, text, email, or in-person, posing as an employee of your gas, water, or electric company. They may spoof the utility's real phone number on your caller ID to appear legitimate.
2
The scammer creates a sense of urgency by claiming you have a past-due bill and threatening to shut off your service within the hour if you do not pay immediately. This tactic is designed to make you panic and act without thinking.
3
They instruct you to pay using a specific, untraceable method. Scammers demand payment via prepaid debit cards, gift cards (like Amazon or iTunes), wire transfers, or digital payment apps like Zelle or Venmo, because these methods are difficult to reverse or trace.
4
Once you provide the gift card number or send the money transfer, the scammer takes the money and disappears. The funds are almost impossible to recover, and the promised utility service is never in jeopardy from a legitimate company.
Red Flags
- Threats of immediate service disconnection without prior written notice.
- Demands for payment via gift card, wire transfer, cryptocurrency, or a cash reload card.
- Pressure to pay immediately over the phone as the only option.
- Caller ID or emails that look official but contain a different callback number than the one on your bill.
- Requests for personal or financial information that the utility company should already have.
- Claims that you have overpaid and requests for bank account information to issue a refund.
- Unsolicited contact offering a discount or rebate in exchange for account information.
What to Do If Targeted
- Hang up the phone immediately if you feel pressured or suspicious. Do not reply to suspicious texts or emails.
- Never provide personal information, financial details, or account numbers to an unsolicited caller.
- Contact your utility company directly using the phone number on your official bill or their website to verify your account status.
- Do not call any phone number provided by the potential scammer.
- Never make a payment using a gift card, wire transfer, or cryptocurrency as requested by a caller.
- Report the scam attempt to your utility company, even if you did not lose money.
How to Report It
- FTC — File a fraud report with the Federal Trade Commission to help them track and stop scammers.
- FBI IC3 — Report internet-based crimes and phone scams to the FBI's Internet Crime Complaint Center.
- BBB — Report the scam to the Better Business Bureau to warn others in your community.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- In 2024, customers of a single utility, PG&E, lost $646,000 to shutoff scams after the company received over 26,000 scam reports. — PG&E 2025
- Victims of utility scams reported a median loss of $463 in 2023. — BBB 2023 Scam Tracker Risk Report
- Nearly one in five (18%) Americans have been targeted by a utility scam in the past year, with 52% of attempts happening by phone. — Utilities Now survey
- Imposter scams, which include utility scams, resulted in $2.95 billion in losses reported to the FTC in 2024. — FTC Consumer Sentinel Network Data Book 2024
- The FTC received nearly 30,000 reports of identity theft related to utility accounts in 2024. — FTC Consumer Sentinel Network 2024
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Frequently Asked Questions
No. Legitimate utility companies will not threaten immediate shutoff over the phone for a late payment. They are required to send multiple written notices through the mail before disconnecting service and will offer various payment options.
Scammers demand payment through untraceable methods like prepaid debit cards, gift cards, cryptocurrency, or wire transfers. Real utility companies will never demand payment through these specific methods and offer various ways to pay, such as online, by mail, or at authorized payment centers.
Yes, scammers use a technique called 'spoofing' to make it appear as though the call is coming from your actual utility company's phone number. Always be skeptical of unsolicited calls and verify your account status by calling the number on your official bill.
No, utility scams target everyone, including renters and business owners. Scammers often target small businesses during busy hours, like a restaurant's dinner rush, preying on their need to keep services running to operate.
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