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The Art of Deception

How to Spot – and Avoid – Utility Scams

By Kathy Hackleman
Penn Lines Contributor

 

Any individual or business served by a utility could potentially be the victim of an online scam, says Monica Martinez, executive director of Utilities United Against Scams.

“People use their mobile devices for everything,” she says. “The consumer has the ability to do more things online, including banking and other types of monetary transactions, but it also opens them to more risk.”

Consumers will often fall prey to these utility scams, especially when confronted with the threat of a vital service being disconnected — unless payment is made immediately. Online ploys via text or email are common, but scammers will knock on your door, too, and even give you a call.

“[They make it] sound like it’s the real deal,” Martinez says. “Sometimes, they will say the payment was made but it didn’t go through, and they ask for information again. What happens is they get your financial information and end up using it fraudulently.”

Fight scams with vigilance

October is Cybersecurity Awareness Month, created by government and industry groups in 2004 to ensure Americans have resources to stay safe online and protect their personal data.

Actions that keep everyone safer online include enabling multi-factor authentication, using strong passwords, updating software regularly and recognizing phishing, which is an online attempt to steal sensitive information, such as your usernames, passwords, credit card numbers and bank account information.

Consumers are also encouraged to be aware of utility scams, which even the wariest of people may fall victim to, especially if the amount they are told they owe seems reasonable.

“No one wants to be without their electric, gas or water service, but it’s wise when receiving a message such as this to think, ‘Could this be a scam?’, before acting,” Martinez says.
 

HACKER WEARING A HOOD WORKING ON A LAPTOP
 

Scammers, she adds, will also set up fake websites that mimic a real utility website and/or provide a fake phone number so the consumer will feel safe providing personal information. Search engine optimization makes it easy for these fake websites to appear at the top of the list when a consumer searches online for a utility’s name. Scammers have also been known to use real messages from utility websites to make their site seem authentic.

So how do you know if the site you’re using is legitimate? Certain clues will give away a fake site, experts say. For instance, look carefully at the URL, which is the site’s web address; those used by fake websites may be off by a single letter or number. Beyond that, look for poor grammar, low-quality images, offers that seem too good to be true and requests for nontraditional payment options, such as gift cards, cryptocurrency and prepaid debit cards.

Scammers also target consumers who are relocating by offering to help the new resident set up utility accounts for a fee (utilities may require a deposit, but they do not charge consumers a fee to begin service). In addition, some utilities report scammers will target consumers in areas suffering a major outage by offering to move them closer to the top of the reconnection list for a fee.

The key to avoiding scams is vigilance, Martinez says.

She advises consumers to check, double check and triple check any unusual contact. Be wary, she says, of requests for immediate payment to avoid disconnection and alert for anyone who claims you’ve overpaid a bill and needs your bank information to issue a “refund.” 

“Stop and take a moment,” Martinez says. “Find the number of your local utility and call them. Don’t be forced into doing anything immediately.”
 

PERSON ACCESSING SECURE WEBSITE
CHECK AND DOUBLE CHECK: Online scammers will use all kinds of ploys to get valuable information, including usernames and account numbers, from consumers. When in doubt, don’t act immediately. Instead, call your electric cooperative to verify that what you’re being told is legitimate.
 

Cooperatives offer protection

In the meantime, remember your electric cooperative employees want to keep you safe. Kyle Smith, information technology manager at Gettysburg-based Adams Electric Cooperative, is one of them. 

At the most basic level, Adams Electric takes steps to guard its members’ personal information. 

“From an employee standpoint, people only have access to information they need to perform their jobs,” Smith says. “If an employee doesn’t need access to members’ Social Security numbers, they don’t have it. Even when we are talking to a member, that member has to be verified before we discuss their account with them.”

The cooperative also trains employees and board members to avoid phishing scams and uses Penn Lines, bill stuffers and other communication to remind members about cybersecurity basics as well as cooperative business practices.

“We’re not going to call and ask you to pay something over the phone or ask for bank account information or your full Social Security number,” Smith says. “We make members aware of our business practices so they can tell when something is unusual.”

Smith also writes occasional articles for Penn Lines. A recent one used a locked-door analogy to educate consumers about online safety.

“People used to open their unlocked front door to anyone,” he says. “Now, most people lock their door and look out to see who is there before they answer. I tell them to use that concept for emails and texts. Don’t trust them implicitly. Look at them and think about if they might lead to a cybersecurity issue.”

While the most common utility scam is a “late-payment” claim, there are others. One involves an email or text saying the utility has created a new log-in portal (“Go to our new website and sign in …”). There, the consumer is asked for personal information.

Clearly, it’s an ever-changing world when it comes to fighting utility scams, and cooperatives and other utilities must stay one step ahead of scammers.

“We are never going to say exactly what we are doing to prevent scams,” Smith says, “but I can say we have firewalls in place [and] practices for verification.”

Similar consumer-protection practices are in place at Valley Rural Electric Cooperative (REC). Information Technology Manager Max Hetrick says staff will post general cybersecurity reminders online and warn the public about scams brought to their attention. Internally, the cooperative focuses on cybersecurity training for employees.

“We constantly remind employees and members that Valley REC doesn’t just ask for or solicit information over the phone or by email,” Hetrick says. “The single most important thing is constantly reminding everyone to not click on links in emails or texts, and don’t hand out information over the phone unless you have called the company directly.”

 

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October 2024 Cover

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50th Anniversary Penn Lines magazine cover