Winter Utility Scams: The Dangers Lurking Beyond the Snow

With winter weather hitting different parts of the United States, we're all thinking about driving in snow, and the fun activities like skiing and snowboarding. However, what you are not thinking about is how scammers are paying attention to weather patterns in an effort to exploit you.

Recently, the FTC issued a consumer alert warning that scammers are posing as fake utility workers. This means that a fake utility worker could knock on your door, claiming there are urgent repairs due to the winter storm. Events such as power outages or damage due to recent weather provide convincing cover for their scams.

Be extremely cautious and if they ask for cash, don’t give it to them.  This is a classic scam sign. Utility companies don't operate this way. Anyone showing up at your door telling you that you owe money is likely a scammer.  Don’t worry, if you owe money, your utility company will bill you.

It's also an opportunity for shady and unlicensed contractors to take advantage of the winter conditions. They might offer to repair storm damage for cash, but if you pay upfront, there is the possibility that they might disappear with your cash. Always check that the work is done to your satisfaction and as agreed upon before making any payments to anyone.

I recall an incident from my college days where a friend and I encountered someone posing as a Comcast internet utility worker.  It was almost convincing, because the scammer was wearing an orange vest and a clipboard, going from house to house. My friend quickly realized something was off and gave the scammer a piece of his mind, making a huge scene in the neighborhood.

This is just a reminder to always be skeptical when someone claims they're from a utility company and requests immediate payment. It's okay to doubt their authenticity. Politely decline and say you'll contact the company directly. Here’s the catch with that – do not trust any contact information that they provide.  

Sometimes, elaborate and sophisticated scams involve more than one “actor”.  Meaning that actor 1, the fake utility worker, provides you with a phone number to call actor 2 who is someone pretending to be your utility company.  This fake representative of your utility company will tell you to follow the instructions of actor 1.  See how sneaky all of this is?

The right move here is to excuse yourself and look up the official utility company website and get the contact information from there – the original source.  This is the only way to verify whether or not the suspected scammer is legitimate or not.

Scammers often play on your emotions and need for essential services like electricity and heating, especially in winter. They might claim you owe money and threaten to cut off your utilities. Again, this is not how utility companies operate – this is a huge red flag.

These scams when conducted via the phone or email often result in the scammer asking you to make payment via wire transfer, cryptocurrency or gift cards.  All of these payment sources should be screaming “red flags” to you!  They choose these payment sources in the scams, because they are often irreversible.  Typically, once you send the money, it’s gone!

If you ever fall victim to such scams, contact the service you used to send the money (your bank, crypto broker, gift card vendor) and try to stop the transaction. Hey, it's always worth a shot, but your money is most likely gone.  Also, inform your local police, as a crime has occurred. Notifying law enforcement might help protect others in your area from being targeted.

So, with winter’s arrival be extra vigilant against these scams and protect yourself and your neighbors. Enjoy the winter weather safely, and remember, we're all in this together. Stay safe!

References:
https://consumer.ftc.gov/consumer-alerts/2024/01/tracking-first-winter-storms-year-so-are-scammers
https://consumer.ftc.gov/articles/scammers-pretend-be-your-utility-company