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Beware of Electric Bill Scams in Texas

Beware of Electric Bill Scams in Texas

Learn how to spot and avoid electric bill scams in Texas. Stay protected and keep your information safe!

Kendra Aquino By Kendra Aquino
Fact Checked
Alexia Diaz By Alexia Diaz

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. 

Recognizing Electric Bill Scams

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.

Identifying Threatening Disconnection Notices

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.

Fake Utility Company Representatives

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.

Payment Methods Used by Scammers

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.

Prepaid Debit Cards and Gift Cards

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.

Insider Tips on Avoiding Electric Bill Scams

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.

Red Flags to Watch Out For

Be aware of these telltale signs of an electricity bill scam:

  • Unsolicited phone calls demanding immediate payment over the phone.
  • Threats to disconnect your power within hours if you don't pay.
  • Requests for untraceable payment methods like gift cards or wire transfers.
  • Callers claiming to be from "the electric company" or naming big utilities like CenterPoint or Oncor.

Steps to Verify Authenticity of Calls and Notices

If you receive a suspicious call about your electric bill, you should follow these steps:

  1. Hang up the phone. Don't engage with the caller or provide any personal info.
  2. Call your electricity provider directly using the number on your bill.
  3. Check your mail and email for any disconnection notices from your electric company.
  4. Report the scam attempt to your utility company and the Public Utility Commission of Texas.

Protecting Personal Information from Scammers

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.

How to Report Utility Payment Scams in Texas

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:

Contacting the Texas Attorney General's Office

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.

Public Utility Commission of Texas

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.

Seeking Help with Electric Bill Payments

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.

Avoiding Scam Calls from Fake Utility Companies

To avoid falling for scam electricity bills in the future:

  • Be wary of unsolicited calls demanding payment, even if the caller ID looks legitimate. The true caller ID can easily be disguised by scammers. 
  • Never give out personal info like account numbers or SSNs over the phone.
  • If threatened with immediate disconnection, hang up and call your utility company directly.
  • Ignore demands for untraceable payment methods like gift cards or wire transfers.
  • Verify any suspicious calls by contacting your electric utility using the number on your bill.

Trusted Payment Methods for Your Electric Bill

Use secure and traceable methods to pay your real electric bill:

  • Credit card or debit card payments on a trusted utility website
  • Check or money order payments by mail
  • Bank drafts or electronic funds transfers set up through your utility company

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.

Stay Vigilant

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.