Imagine the shock of receiving an urgent call from your electric company, threatening to cut off your power unless you pay up immediately. Now, think about the horror of sending hundreds — maybe even thousands — of dollars only to discover it was a scam. Unfortunately, electric bill scams are real and increasingly common in Texas.
Scammers are ruthless, preying on your fear and urgency. When it comes to electricity scams, they often strike during heat waves or holidays, when losing power is the most disruptive. Last year alone, Texans reported millions of dollars in losses due to these scams.
In a new type of electricity scam first reported by NBC DFW, fraudsters create fake "electricity plans" that sound too good to pass up. They target unsuspecting individuals, often vulnerable populations, promising to handle account setup and billing directly. Using stolen personal information, the scammers open legitimate accounts with Texas retail electric providers (REPs), but under someone else's identity like a resident in another state.
The person paying for the plan unknowingly sends money to the scammer instead of the utility provider. Meanwhile, the account racks up charges, and eventually, the person whose identity was stolen gets hit with a hefty, unexpected bill for an account they never knew existed.
Moral of the story: if something is too good to be true, it probably is.
You might receive a call from someone claiming to be from your electric company, accusing you of being behind on your utility bills and threatening to cut off your power if you don't pay immediately. They might even have some of your personal information to make their scare tactics more believable.
Scammers often pose as representatives from well-known utility companies like CenterPoint Energy or Oncor to gain your trust. Remember, your real utility or electricity provider will never demand immediate payment over the phone. If you're unsure, hang up and call the customer service number on your actual bill.
Scammers usually insist on untraceable payment methods like prepaid debit cards or gift cards. These methods are favored because once the money is sent, it's nearly impossible to get it back.
If a caller demands payment with a prepaid debit card, gift card, or wire transfer, it's a major red flag. Scammers might instruct you to buy prepaid cards like GreenDot or Vanilla Visa and read the numbers over the phone or send money through apps like CashApp or Western Union.
Scammers are becoming more sophisticated, often posing as representatives from legitimate electricity providers to deceive unsuspecting customers. According to Alexia Diaz, an Operations Analyst at EnergyBot with over a decade of experience in the energy industry, these fraudsters may go as far as impersonating your current supplier to trick you into enrolling with them.
"Scammers will pose as real electric companies and say they are signing you up for a reputable company, but they’re really not," warns Alexia. "For Spanish-speaking customers, they might even impersonate them by pretending to be the customer in English during third-party verification calls."
These scammers may pose as your utility company and request a copy of your bill under the guise of verifying your information. Sharing your bill or any personal details can be dangerous, as they can use this information to place a fraudulent enrollment on your account without your consent. It's crucial to understand your bill, including who your supplier is and when your contract ends, to avoid being misled.
To protect yourself, Alexia suggests asking for a badge ID and verifying the representative's identity. "With the badge ID, you can automatically report them directly to the supplier," she advises. Always stay vigilant and question anyone who contacts you about your electricity service.
Be aware of these telltale signs of an electricity bill scam:
If you receive a suspicious call about your electric bill, you should follow these steps:
Never share your personal info with strangers. Scammers might sound convincing, but they are experts at exploiting fear. A legitimate utility company will never demand payment or personal info over the phone, especially if they initiated the call.
If you've been targeted by a utility scam, report it immediately. Your report can help protect others from falling victim. Here are several ways to do so:
File a complaint online or call their consumer protection hotline at 1-800-621-0508. They can investigate the scam and take legal action against the perpetrators.
File a complaint on their website or call them at 1-888-782-8477. They will work with your utility company to address the issue and protect others.
If you're struggling to pay your electric bill, there are legitimate ways to get help. Contact your electricity provider about deferred payment plans or assistance programs. Local charities, religious organizations, and government assistance programs can also offer help.
To avoid falling for scam electricity bills in the future:
Use secure and traceable methods to pay your real electric bill:
If you're ever instructed to pay your bill with a gift card, cash reload card, or wire transfer, it's a huge red flag. Legitimate companies will never demand payment via those methods.
Scammers are crafty, but now you're ready to outsmart them. You've worked hard for your money, and it's only right that it stays in your pocket. Keep these tips in hand and stay protected against the tricks of scammers.
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