Amidst the cost-of-living crisis, it is reported that scammers have been led to targeting over 40 million new homes across the United Kingdom; of this, 12% of those who fall victim to them are energy customers.
Scammers prey on weaknesses like money concerns that panic the victim enough to stop you from identifying vital warning signs that could protect you and your home. Today, we have found that more people are vulnerable to scams since more people are concerned about paying their expenses due to today’s fast-changing energy landscape. Fortunately, there are several simple ways to spot energy scams and fraud.
Here at Energy Brokers, we know that not everyone is familiar with investment scams or how to recognize fraudulent behavior across platforms; whether this is via email, letter or even someone on your doorstep. This is why we put together a simple guide to help you identify whether a firm is registered, and always check the status of who is contacting you on behalf of your suppliers.
If you think you’ve been caught by a fraudster, don’t feel bad. 73% of the UK has at some time fallen victim to scammers, and we will touch on what you can do about this later.
Beware of the most common types of scams and how to spot them
With energy scams, con artists often pose as energy providers or trading platform authorities in order to steal your money or personal data. They can deceive you by offering grants, promising inexpensive energy, and making claims about energy efficiency.
Con artists use a number of techniques – You may receive a knock at your door, a phone call, messages on social media, or even an email from a scammer that looks very much like your own trader. They have also branched out to webpage pop-ups and text messages.
OfGem Energy Scam: when people pretend to be the regulator
We have found that a big red flag for customers is when they are contacted by someone claiming to be the energy regulator, OfGem. To receive money or cheaper energy, you will then be asked to update your bank account information or supply personal or financial information that your supplier should have already have access to within your account.
You won’t ever be asked for personal information by Ofgem, and there’s no action required to get £400 off your winter energy bills. Additionally, Ofgem will never visit your home or try to sell you energy. We like to be clear that if it seems too good to be true, it probably is, and unfortunately nobody will be able to offer you hundreds off of your energy bill from your doorstep.
Investment scams and rebates from an investor
Whenever there is real financial relief offered to a customer’s account, be aware that scammers will be working on a way to use this for their benefit. Scammers have been tricking consumers into providing their information recently by utilising the £400 government energy bill rebate programme. Other strategies have included making money-related pledges to those who have paid commission in the past, or are disabled or of pension age. See this blog post on how to save £400 on your energy bills starting in October for more details on the energy bill rebate programme.
Energy efficiency and home improvement scams
When it comes to home improvement scams, a fraudster may approach you to claim that your residence is hazardous and that adjustments need to be made right away to protect you and your family from harm. This can be very unsettling, so it’s advisable to check with a qualified and accredited specialist or call Citizens Advice to put your mind at ease so you can know that all information is coming from an unbiased party.
How to avoid being scammed
The best ways to recognise when a scammer is at work is to be aware of what to look for in energy and investment scams and to always be cautious. Here are a few ways to keep yourself safe from con artists:
- Always confirm that the contact details attached to the supplier’s email or text you received is accurate to what was used when you set up your contract. If you find this is not an authorised firm, do not respond and contact your supplier directly.
- Double check social media information: It can be difficult to spot a fake account today, but most brokers will have their phone numbers and media links available live on their site – If someone contacts you another way, it is best to report them too.
- Never send money immediately – If you are being pressured to transfer money quickly, and being offered high returns or simply returns that sound too good, you may have been targeted for the wrong reasons.
- Make sure you understand what scams look like, e.g being asked to pay in an usual way, or invest in something you do not fully understand.
How OfGem, the energy regulator, deals with rule breaking Brokers
OfGem, the energy regulator in the UK, is responsible for ensuring that energy brokers comply with the rules and regulations set out by the government. But how do OfGem deal with rule-breaking brokers and what measures they take to ensure that consumers are protected from any potential harm?
OfGem have the power to issue a compliance notice if they believe that a registered broker is in breach or has failed to comply with OfGem’s rules and regulations. A compliance notice sets out what action must be taken by the broker to cure their breach, and how long this period will last. Brokers are also able to self-disclose any breaches of rules and regulations at any time, which OfGem verify before issuing a formal compliance notice. Once it’s been verified, when Broker X is issued with a notification from OfGem about their failure to comply, they are given 2 weeks to submit a plan for how they will compensate customers and/or provide victims with the appropriate remedy. Once the compliance period has concluded, if the broker doesn’t have satisfactory evidence of having dealt with their breach, OfGem is able to take action against them.
This range of enforcement actions includes issuing further compliance notices and/or suspending or dissolving the broker’s operating authorizations. or license. The Office also reviews operational information and conducts investigations in response to complaints as part of the Business Practices and Consumer Protection Division. This includes reviewing the background of a person or company to determine whether they are eligible to engage in insurance underwriting, examining claims data provided voluntarily by insureds, conducting audits of insurance companies, assessing investigative powers with respect to unlicensed insurers or agents, investigating potential violations of consumer protection statutes such as the Insurance Act and Criminal Code, consulting with provincial authorities about allegations that an insurer has engaged in fraud or misconduct; and deciding whether enforcement actions will be taken against regulated entities for failure to comply with the Insurance Act and its regulations. The Office also conducts risk assessments of proposed changes to the insurance industry, including regulatory proposals.
What to do if you think your broker is going against regulation?
If you are concerned that your energy provider may be part of the scam, are unregistered, or even simply want to make a complaint, you can complain directly to OfGem.
You can use the sample complaint letters provided by Citizens Advice or contact them to assist with a complaint. In the right cases, you can negotiate to have them to act on your behalf.
If you are in a precarious circumstance or your energy is cut off, someone at their Extra Help Unit (EHU) may take on your case. They can also suggest other organisations that can assist you. This free service provides some assistance for small enterprises.
You can also follow and manage a complaint step-by-step with the aid of free internet resources and applications like Resolver.co.uk.
In England and Wales, Citizens Advice can offer further advice if you need it
- Call 0808 223 1133 or use their online webchat.
- For textphone, dial 18001 followed by the helpline number.
In Scotland, Advice Direct Scotland can help:
- Visit the energyadvice.scot website
- Call 0808 196 8660 or use their online webchat
- Email energyadvice.scot
How to get your money back
In most cases, your bank and your supplier will work together to ensure that you get any money you lost credited back to your account.
If you see a payment from your bank account that you don’t recognise — this is referred to as an “unauthorised transaction” — or if you used your debit card and more money was taken than you anticipated, contact your bank at once.
By asking for a refund and explaining what happened as soon as possible, you are protecting yourself in the future. You can complain to the bank if you are dissatisfied with how they handle your claim.
Lastly, you can contact the Financial Ombudsman if it has been 8 weeks since your complaint and you still haven’t received your money back. If the bank has sent you a letter stating that it won’t take any action, you can also get in touch with the Ombudsman. This is sometimes referred to as a letter of final answer.