Beware of Utility Scams

Fraudsters are known to take advantage of various situations to scam unsuspecting people. Recently, there has been an uptick in utility-related scams due to the Canada Post service disruptions. Fraudsters know that utility companies cannot mail bills and other communications to their customers and use this to their advantage.

They will pose as representatives of the utility company and call the victim, stating they have a work order to turn off their power, water, or other utility due to an unpaid balance. The fraudsters appear to be legitimate representatives, often having the victim’s account number, home address, and contact information.

Assuming a payment was missed due to the postal disruptions, victims will then ask if they can pay the balance to avoid having their utilities shut off. The fraudster will tell them they can pay it over the phone, and they will proceed to transfer the victim to another department to do so.

Once transferred, the victim often hears a realistic phone menu: “Hello and welcome to the utility company’s customer support line. Please pay attention as our menu options have recently changed. Press 1 for account information, and press 2 to make a payment, etc.” If the victim follows the prompts, they will “pay their remaining balance” to a fraudster.

Not all utility scams are exactly like the scenario above, although they are all becoming more realistic.

What to do if you suspect you’re the target of a utility scam

1. Hang up: If you suspect something is off about a phone call you received, hang up. Find an old invoice from the utility company or search their official website for a phone number and call them back. Do not call back the number that just called you.
2. Do not share personal information: If you receive a phone call about an unpaid balance, never give out your personal information including credit card numbers, bank account numbers, or contact information – no matter how legitimate.
3. Check your account: If you can access your account online, log in and confirm your account is settled.
4. Report it: Utility companies want to know what scams are going on. Reporting it allows them to investigate fraudulent activity and work to protect its customers.

What to do if your banking information is shared with a scam artist

1. Contact your bank: Your bank can freeze your accounts to ensure the fraudster cannot withdraw more money.
2. Contact your local police: It is the police’s responsibility to investigate cases of scam or fraud.
3. Report the scam to the Canadian Anti-Fraud Centre (CAFC): Reporting scams or fraud to the CAFC online or over the phone can resolve previous crimes, connect multiple crimes, and help the CAFC with prevention and awareness efforts.

Scam artists are constantly evolving and working to find new ways to take advantage of innocent people. Be vigilant and keep your information and money safe!