So, you’re looking for a new energy contract and have been approached by an energy broker.

Your business energy rates have been high for a while, your energy provider is unwilling to negotiate lower rates, and you can’t find the time to save money on your energy bills.

You’re approached by a TPI who claim to be energy experts. They assure you that you’re not paying a fair rate and they can save you money on energy bills.

However, you remember reading advice from Ofgem on how to avoid scams. Utility scams, company scams, and email scams are all commonplace throughout 2022.

So, don’t let fraudsters scam your company or energy. Keep reading to find out what to look out for and how to act.

What are energy scams?

Energy scams are fraudulent schemes that aim to deceive individuals or businesses into paying for energy products or services that are either not needed or not provided. These scams can take many forms, including:

Misrepresentation of services: Energy scammers may pretend to be representatives of legitimate energy companies and offer false or misleading information about energy prices, tariffs, or services.
Impersonation of utility employees: Scammers may pose as employees of local utility companies and demand payment for supposed overdue bills, or threaten to disconnect service unless payment is made immediately.
Door-to-door sales: Some scammers may go door-to-door, offering discounted energy products or services, and request payment in advance.
Energy audits: Scammers may offer energy audits, which are supposed to identify ways to reduce energy costs, but instead, they use this opportunity to sell unnecessary or overpriced energy-saving products.
Phishing scams: Energy scammers may use email, phone, or text message to request personal or financial information, such as social security numbers or bank account details, for supposed energy bills.

These scams can result in significant financial losses for individuals and businesses, and can also undermine trust and confidence in the energy industry. To avoid falling victim to energy scams, it’s important to be aware of these types of scams, and to be cautious of unsolicited offers or requests for personal or financial information. If you have any doubts or concerns, it’s best to verify the authenticity of the offer or request with your energy supplier directly.

Who’s at risk of being scammed?

Anyone can be a target of an energy scam, although some groups may be more vulnerable or at a higher risk. These groups include:

Older adults: Older adults may be more susceptible to energy scams due to their age, lack of knowledge of energy products and services, or difficulties recognizing scams.
Low-income households: Low-income households may be more likely to be targeted by energy scams due to their need for affordable energy solutions, and may be more susceptible to false promises of low-cost energy products or services.
Small businesses: Small businesses may be at risk for energy scams due to their lack of knowledge or expertise in energy procurement, and may be more susceptible to false promises of low-cost energy products or services.
Immigrants: Immigrants may be more vulnerable to energy scams due to language barriers or a lack of knowledge of energy products and services in their new country.
People with disabilities: People with disabilities may be more susceptible to energy scams due to difficulties recognizing scams, and may be more likely to trust individuals who claim to be representing energy companies.

However, it’s important to note that anyone can be a target of an energy scam, regardless of their age, income, education, or background. The best way to avoid falling victim to an energy scam is to be aware of the risks and to take steps to protect yourself, such as verifying the authenticity of unsolicited offers or requests for personal or financial information.

What to look out for to avoid being scammed?

To avoid being scammed, it’s important to be aware of the warning signs of energy scams and to take steps to protect yourself:

Unsolicited offers or requests: Be cautious of unsolicited offers or requests for personal or financial information, especially if they come from individuals claiming to be representatives of energy companies.
High-pressure sales tactics: Be wary of individuals who use high-pressure sales tactics, such as demanding an immediate decision or payment, or threatening to disconnect your energy service.
Requests for payment in advance: Do not pay for energy products or services in advance, especially if the individual is making the request on behalf of an energy company.
False promises of low-cost energy products or services: Be skeptical of individuals who make false promises of low-cost energy products or services, as these promises may be too good to be true.
Requests for personal or financial information: Do not provide personal or financial information, such as social security numbers or bank account details, to individuals who claim to be representatives of energy companies, unless you have verified the authenticity of their request.
Unusual billing practices: Be aware of unusual billing practices, such as bills that are much higher than usual, or bills that are received from a different energy company.
Energy audits that result in high-priced products or services: Be cautious of energy audits that result in high-priced energy-saving products or services, especially if the individual who conducted the audit is not affiliated with a reputable energy company.

If you have any doubts or concerns, it’s best to verify the authenticity of the offer or request with your energy supplier directly. Report any suspected scams to the relevant authorities, such as the Federal Trade Commission (FTC) in the United States, and to your local utility company.

How to identify a utility scammer over the phone?

Here are some tips on how to identify a utility scammer over the phone:

Unsolicited calls: Scammers often make unsolicited calls, claiming to be representatives of your energy company and demanding immediate payment. Your energy company will not typically make unsolicited calls demanding immediate payment.
Threats of disconnection: Scammers may threaten to disconnect your energy service if you do not make a payment immediately. Legitimate energy companies will provide you with a notice of disconnection, and will not make threats over the phone.
Requests for payment via prepaid debit cards: Scammers may ask for payment via prepaid debit cards, which are difficult to trace and recover. Your energy company will not typically ask for payment via prepaid debit cards.
Demands for personal information: Scammers may ask for personal information, such as social security numbers or bank account details. Your energy company will not typically ask for this information over the phone.
Unusual accents or poor English: Scammers may have unusual accents or speak English poorly, as they are often located outside the country.
High-pressure sales tactics: Scammers may use high-pressure sales tactics, such as demanding an immediate decision or payment.

If you receive a call from an individual claiming to be a representative of your energy company and you suspect that the call may be a scam, hang up and call your energy company directly to verify the authenticity of the call. If you have any doubts or concerns, it’s best to err on the side of caution and not provide any personal or financial information over the phone.

How to identify a door-to-door scammer?

Here are some tips on how to identify a door-to-door scammer:

Unsolicited visits: Scammers often make unsolicited visits, claiming to be representatives of your energy company or offering low-cost energy products or services. Your energy company will not typically make unsolicited visits.
High-pressure sales tactics: Scammers may use high-pressure sales tactics, such as demanding an immediate decision or payment. Legitimate energy companies will not use high-pressure sales tactics.
False promises of low-cost energy products or services: Scammers may make false promises of low-cost energy products or services, which may be too good to be true.
Requests for payment in advance: Scammers may ask for payment in advance, especially if they are claiming to be representatives of an energy company. Your energy company will not typically ask for payment in advance.
Requests for personal or financial information: Scammers may ask for personal or financial information, such as social security numbers or bank account details. Your energy company will not typically ask for this information during a door-to-door visit.
Lack of identification: Scammers may not have proper identification or may be using fake identification. Legitimate energy company representatives will have proper identification and be willing to show it to you.
Inconsistent or vague information: Scammers may provide inconsistent or vague information about the company they represent or the products or services they are offering.

If you are visited by an individual claiming to be a representative of an energy company and you suspect that the visit may be a scam, ask for their identification and verify their authenticity by calling your energy company directly. If you have any doubts or concerns, it’s best to err on the side of caution and not provide any personal or financial information or make any payments on the spot.

What to do if you’ve been targeted in an energy scam?

If you believe you have been targeted in an energy scam, it’s important to take the following steps:

Report the scam: Report the scam to the Federal Trade Commission (FTC) at ftc.gov/complaint, or to your local police department if the scammer was a door-to-door salesman.
Protect your personal information: If you have provided personal or financial information to the scammer, monitor your bank and credit card statements for any unauthorized transactions, and consider placing a fraud alert on your credit report.
Notify your energy company: If the scammer claimed to be a representative of your energy company, notify your energy company of the scam and confirm your account status and payment information.
Warn others: Share your experience with others to help prevent others from falling victim to the same scam.
Keep records: Keep records of all communications with the scammer, including the date and time of the call or visit, the name used by the scammer, and any other relevant details.

It’s important to stay vigilant and protect your personal and financial information, especially when dealing with unsolicited calls or visits from individuals claiming to be representatives of your energy company. By taking the steps outlined above, you can help protect yourself from energy scams and ensure that your energy needs are met in a safe and secure manner.

What are the 4 most common scams?

Here are the four most common energy scams:

Impersonation of utility companies: Scammers may call or visit households claiming to be from a local utility company and demand immediate payment for a past-due bill or threaten disconnection of service.
Door-to-door sales: Scammers may go door-to-door offering discounted energy products or services, often requiring payment in advance. They may use false or misleading information to convince homeowners to switch providers.
Energy audits: Scammers may offer “free” energy audits to identify energy-saving opportunities and then offer overpriced products or services to make the recommended upgrades.
Energy rebates: Scammers may offer false or misleading information about government-sponsored energy rebates, often requesting payment in advance to cover the cost of paperwork.

It’s important to be cautious when dealing with unsolicited calls or visits from individuals claiming to be representatives of an energy company or offering energy-related products or services. Always verify the authenticity of the caller or visitor, and never provide personal or financial information or make a payment without thoroughly researching the offer first.

In Conclusion

In conclusion, energy scams can be dangerous and costly to those who fall victim to them. It is important to be aware of the common tactics used by scammers and to always verify the authenticity of callers or visitors before providing any personal or financial information or making a payment. Protecting your personal and financial information and staying vigilant can help you avoid becoming a victim of an energy scam. If you believe you have been targeted, take immediate action by reporting the scam, protecting your personal information, notifying your energy company, warning others, and keeping records. By being proactive and informed, you can help prevent energy scams and ensure the safe and secure management of your energy needs.