Kathleen Wolf Davis | Jun 24, 2014

Where there's a need, there's a scam. After all, there's a reason that we have the phrase "snake oil salesman" in the lexicon. And the greater the need, the greater the scam opportunities it seems. Snake oil salesmen used good marketing shtick to prey on the sick; today's scammers use technology to spread their cons across the population a bit more objectively-and power has certainly been a part of a con artist's favored target market.

After all, it's the biggest potential con market of all: absolutely everyone needs power.

If you've been following utilities on Twitter recently, you may have noticed the same thing I did-a whole lot of utilities warning customers about scam artists.

Running down the con
We polled a few utilities to ask what's going on in their areas and what they suggest customers should keep an eye out for. In the Northeast, we chatted with Penni McLean- Conner, chief customer officer and senior vice president for Northeast Utilities (NU). In the Midwest, we spoke with Brian Wheeler, a spokesperson for Consumers Energy.
In the Northwest, we spoke to Sarah Pagliasotti, a spokesperson for Portland General Electric (PGE).

All three cited one specific scam they've been dealing with recently: the Green Dot.

"A typical scenario involves the caller demanding payment for a Consumers Energy bill within an hour, and telling the customer to purchase a Green Dot prepaid credit card available at drug and food stores. People are then directed to call an 866 toll-free phone number to pay their bill with these cards," Wheeler said.

All three utilities mentioned a focus on Spanish-speaking and foreign language populations. NU and PGE saw the scam spread to businesses as well.

"In some cases, restaurant owners have been approached during a busy dining hour and were told they had an electrical problem that could cause a fire and they must pay immediately to have it fixed," McLean-Conner added.

PGE's newest scam problem, however, isn't Green Dot based. It's an email sent to customers made to look like it has come directly from the utility. The email has links labeled as ways to view an online bill, but it really connects to malware that attempts to steal banking information and passwords. That one is more broadly targeted across businesses and residential consumers than the Green Dot one.

And, Pagliasotti admits that the email aspect is new to them.  Phone scams, prepay and door-knocker scam-these are old school. But, email is a newer beast in this business.

So, how do they advise customers to ward off these scammers who are increasingly getting more sophisticated in their tech savvy? By using an old-school defense: Llistening to your gut and approaching everything with caution.


How to spot a utility fraud
McLean-Conner said the one thing all customers need to remember is that NU does not require you to purchase any type of pre-paid card to pay your utility bill. (Wheeler mentioned the same with Consumers Energy.)

Second, if you get a call from someone claiming to be from your utility who seems suspect, McLean-Conner advises having the caller verify account information in a similar way that utilities and banks do when you call them: Ask for the account number. (don't give it).Ask for the name on the account and the address (again, don't give those, however). Ask for the past-due balance. If your caller can't answer those things, hang up, note the phone number the call came in on and immediately call the police.

Wheeler tells customers to trust their own instincts when they get these sorts of calls.

"If something sounds wrong, don't feel pressured to make a payment or give out personal information," he added.

And utilities like NU, Consumers and PGE will continue to keep an ear to the ground and sound the warning about scams-spreading the word is the best defense.

Talk, more talk
All three utilities said that most effective way that utilities can thwart scammers is through communication, and NU is working to increase scam awareness with this issue, especially with Spanish-speaking customers, McLean-Conner noted.

"We also work with partners like the Better Business Bureau, AARP and our state consumer protection agencies to help to get the message out," McLean-Conner added.

Wheeler added that Consumers tries to build awareness and provide information in order to head-off scams through news releases and media stories, which NU also addressed.
 
His advice: "Be proactive and work to let the public know if there is a scam that persists."
 
Communication is also the cornerstone of PGE's advice for conquering scam artists.
But, Pagliasotti admits this can be complicated. The scam emails they are dealing with look like theirs-and even phone scammers are getting better at programming the phone so that calls appear to come from PGE offices. Utilities just have keep up with the new scams.

When scammers targeted non-native English speakers at PGE, the utility used bi-lingual direct mail and radio spots and even sent bi-lingual letters to business customers.

They even engaged a "Spanish-language ad agency to distribute Spanish posters in "La Tienda"-type markets and spread the word via social media," Pagliasotti added.

To other utilities dealing with scams in their area, McLean-Conner says to be vigilante and just keep talking to your customers.

"Scammers never rest," she added. "It's important to communicate warnings frequently and in as many ways as can be used to reach your customers.  We have found that social media is an especially helpful tool in reminding the public about such scams."

Indeed, that's how I learned about them and decided to write this article. It does get the word out about today's modern snake oil salesmen.


Is there a scam targeting customers in your area? Tell us about it-and how you're dealing with it--on Twitter. Aim the conversation @EnergyCentral with the #UtilityScam.

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