How to avoid utility bill scams during the busy holiday season

OAKLAND, Calif. — During a time when many Californians are busy preparing for the holiday season, scammers are working to exploit unsuspecting customers with sophisticated tactics aimed at  stealing their money.

Scammers will demand payment to prevent immediate disconnection, typically by telephone but also online or in person.

Reports of scams targeting Pacific Gas and Electric Company (PG&E) customers have been at an all-time high throughout 2023.

There have been over 37,000 reports this year alone with customer losses of over $700,000, and an average loss of $816.

PG&E is a natural gas and electric utility company serving more than 16 million people, including a large number of Filipino Americans, in Northern and Central California.

Scammers take advantage of the busy holiday season

The holiday season provides scammers with a prime opportunity to take advantage of customers’ distraction and anxiety.

“Scammers are opportunistic and will exploit times when people are busier than normal and potentially stressed, and they do not take the holidays off,” said Matt Foley, lead scam investigator for PG&E.

“Stress and distraction create a window of opportunity where people are also more likely to fall victim to a scam.”

Foley said PG&E will not contact customers for the first time within one hour of service disconnection. The company will never request payment by a pre-paid debit card or via online payment services like Zelle or Venmo.

Scammers will demand utility bill payment to prevent immediate disconnection, typically by telephone but also online or in person. FILE PHOTO

Search engine scams

Another new tactic that scammers are using is search engine scams. They create fake sponsored utility payment pages on search engines like Google to trick customers.

Customers who wish to pay their utility bill online should make sure to only visit the website listed on their utility bill. For PG&E customers that is www.pge.com.

“Utility impostor scammers continue to grow more sophisticated in their tactics. Increasingly, we are seeing scammers use digital methods that target both younger and older generations,” said Utilities United Against Scams (UUAS) Executive Director Monica Martinez.

Martinez said they encourage customers to stop and verify any unusual utility company requests before making a payment, regardless of whether the customer is contacted via phone, the internet or in person.

UUAS is a consortium of more than 150 US and Canadian electric, water and natural gas utilities and their respective trade associations. It raises customer awareness of common scams and new scam tactics used by utility impostors.

Signs of a potential scam

• Threat to disconnect – Scammers may aggressively demand immediate payment for an alleged past due bill.
• Request for immediate payment – Scammers may instruct the customer to purchase a prepaid card then call them back supposedly to make a bill payment.
• Request for prepaid card – When the customer calls back, the caller asks the customer for the prepaid card’s number, which grants the scammer instant access to the card’s funds.
• Refund or rebate offers – Scammers may say that your utility company overbilled you and owes you a refund, or that you are entitled to a rebate.

How customers can protect themselves

PG&E will never ask customers  to purchase a prepaid card to avoid service disconnection.

PG&E does not specify how customers should make a bill payment and offers a variety of ways to pay a bill. They can pay online, by phone, automatic bank draft, mail or in person.

If a scammer threatens service disconnection, customers should hang up the phone, delete the email, or shut the door. They should report the incident to PG&E at www.pge.com/scams.

PG&E will contact customers with delinquent accounts with an advance disconnection notification. This is done typically by mail, and the notification is included with their regular monthly bill.

Signing up for an online account at pge.com is another safeguard. Customers can log in to check their balance and payment history. They can also sign up for recurring payments, paperless billing and helpful alerts.

Scammers Impersonating trusted phone numbers

Scammers are now able to create authentic-looking 800 numbers which appear on your phone display. If called back, the numbers do not lead back to PG&E.

If a customer has doubts about the authenticity of the call, they should hang up and call PG&E at 1-833-500-SCAM. Customers who feel they are in physical danger should call 911.

Customers who suspect that they have been victims of fraud should contact local law enforcement.

The Federal Trade Commission’s website is also a good source of information about how to protect personal information.

For more information about scams, visit pge.com/scams or consumer.ftc.org.