A call, text, email or knock at the door from someone claiming to be a gas, electric or water company and threatening to cut off service unless a bill is paid at once is a scam, according to the United States Federal Trade Commission (FTC). This guide summarises the FTC’s advice on these utility impersonation scams, including newer variations that use barcodes and QR codes. It describes the position in the United States. The information is general, not legal or financial advice.
How the scam works
The FTC says scammers pretend to be utility companies and may call, text, email or visit in person. They threaten to shut off gas, electric or water service unless payment is made immediately, because they want to frighten a person into paying before there is time to check. In its 2022 alert the FTC noted that the threat of losing power is especially distressing in hot summer months, which scammers exploit.
The payment demands that give it away
A consistent feature of the scam is the way payment is demanded. The FTC says scammers ask for payment in ways that make it hard to recover money:
- Wire transfers, through companies such as Western Union or MoneyGram.
- Gift cards, with the numbers on the back read out to the caller.
- Payment apps.
- Cryptocurrency. In an August 2022 alert the FTC described a version in which a scammer texts a QR code, sometimes with a utility company’s logo, and tells the person to scan it at a Bitcoin ATM or service will be disconnected. The FTC says no utility company will text about a shut-off or demand payment in cryptocurrency.
- Barcodes and QR codes. In a July 2024 alert the FTC described callers who offer a way to avoid shut-off and fees by sending a barcode by text or email to pay at a local retailer such as Walgreens, CVS or Walmart. The FTC says this is a lie: utility companies will not send a barcode and insist on payment at a store.
The FTC’s summary is that only scammers demand a particular payment method, and that a utility company will not ask for any of these.
What real utility companies do
According to the FTC, real utility companies do not demand immediate payment to avoid same-day disconnection. Before shutting off service, all real utility companies will notify a customer in writing and offer a repayment plan. Even when money is owed, the FTC says, a company will work with the customer on a payment plan and will not try to scare them into paying immediately or call unexpectedly with a sense of urgency. The FTC’s 2022 alert adds that for anyone behind on bills there are ways to make payments more affordable, including payment arrangements, budget billing and reducing usage.
What the FTC advises
- Hang up. If someone claiming to be the utility company threatens to shut off service unless payment is made on the spot, hang up, and do not click links or respond to the message. If someone arrives at the door, do not let them pressure their way into the home.
- Contact the company yourself. Use the number on the bill or the company’s website, never the number the caller gave, which leads back to the scammer.
- Check search results carefully. The FTC warns that top search results are often paid adverts, which dishonest businesses sometimes use to impersonate real utility companies. Some of these businesses may pay a bill but also charge fees a customer would not pay by visiting the utility’s own website directly. Scrolling to the unpaid results can help ensure the right number or website.
- Never pay by wire, cryptocurrency, payment app or gift card to anyone who demands it, because only scammers say a bill can be paid only one of those ways.
If money has been paid
The FTC advises contacting the company used to send the money, saying it was fraud and asking for help reversing the payment, and says some money might be recoverable. The FTC points to its page on what to do if you were scammed for steps that depend on the payment method, and the site’s guide to what to do if you paid a scammer in the United States summarises them. Utility impersonation should be reported to the real utility company, using a number known to be genuine, and to the FTC at ReportFraud.ftc.gov. The FTC’s article also lists the state attorney general as a place to report.
Where this fits with other impersonation scams
Utility scams are one form of business impersonation. The same features, an unexpected contact, urgency and an untraceable payment method, appear in many others, which the site covers in its guides to impersonation scams and gift card payment scams.
Frequently asked questions
Would a real utility company text about a shut-off?
The FTC’s 2022 alert says no utility company will text about a shut-off. Real companies notify customers in writing first and offer a repayment plan.
Can a utility take payment by barcode at a shop?
The FTC says a company will not send a barcode and insist that a customer take it to a store to pay. A person worried about a bill should call the number on the bill.
The bottom line
The FTC’s message is that a genuine utility does not phone, text or visit with a same-day shut-off threat, and will never ask for payment by wire transfer, gift card, payment app, cryptocurrency, barcode or QR code. Anyone who receives such a contact should hang up, check with the utility using details from a bill, and report the attempt.