energy-scam-2023

Keeping Yourself Safe from Energy Scams and Phishing

While getting in touch with your energy providers should be simple, it can also make it simple for other parties to get in touch with you—especially if they seem to be operating on behalf of your provider. Sadly, there are many ways for third parties to obtain sufficient information about you to pose as your utility provider. Whether this is done to obtain personal information from you or to obtain your bank account information or other payment details, scams have disastrous consequences for both the victims and the households in which they occur. In this article, we want to walk you through the most prevalent scams and provide you with advice on how to protect yourself and your money by confirming that the people contacting you are trustworthy and honest.

The “rate too good to be true” scam

As the title may show, this is a situation in which a party may contact you to offer an unbelievable rate for your utilities, whether through a colossal discount or straight forward switching scheme that your current supplier couldn’t possibly match. It is common that, following your acceptance of these offers, the rate will change almost immediately. Why? Well, although you may be told that this is due to a change in the market, it is in fact that these (usually unprofessional looking) websites were built to scam you. This can often happen following searches for “cheapest electricity rates” or using “are you paying too much?” links with little substance behind their pricing pages.

The “Security Deposit” scam

The Security Deposit scam usually requires an individual being contacted by someone claiming to work on behalf of their bank;  they will explain that a switch between suppliers has been unsuccessful, and therefore they are required to pay a large amount of money in the name of a “security deposit” that will then be passed onto the supplier. The scammer will usually claim this to be urgent, and will do all they can to keep you on the phone with them, possibly even claiming that your electricity or gas will be cut to your property if you do not provide the payment. Of course, this is untrue; Although some energy suppliers will ask a business for a security deposit if they are deemed to be high risk, for example, someone with a very low credit score or a start-up business, this request will always be made by the supplier as your contract is being discussed, and should never come at random after this. The request for a security deposit will always come from the supplier, to be paid to the supplier. Although your broker may be a messenger in this case, know that they will not be the one receiving payment.

The “Utilities Registration Service” scam

We have also heard reports of customers receiving calls from an official sounding source claiming that they are the “utilities registration service”, “metering registration service”, or something similar. The problem being that these bodies do not exist. Victims are often told that there is an issue with their energy supply and that they must immediately switch supplier, to then recommend a body for them to switch to. Whether or not this body exists, it is unlikely that both your energy supply is in danger, and that the suggested company would ever receive your contacted payment. These are simple cold calls with the goal of taking your information and using them to the benefit of the scammer.

The “Editing Suite” Scam

You may be aware that business energy contracts tend to be largely based around verbal contracts which are recorded for safety. A reputable TPI or supplier should record an entire call (with your knowledge) which will include full verbal acceptance of the contract, alongside details about it. By doing this, the supplier can refer back to ensure that they are aware exactly what you agreed to, what you were told, and what your expectations are as their customer. The problem here is that a number of parties look to edit call recordings, creating a false narrative and changing vital details that you believe to be a part of your contract. Some are even known to have deployed editing suites to fuse together affirmative responses to questions a business was never asked. While it is not easy to stop someone looking to commit fraud, you have a legal right to both request a copy of all recordings and be aware you they are being recorded each time. This is why many businesses have this information as part of an automated passover service before you speak to customer service teams. Telling a fraudster that you demand access to this recording before making any verbal (or otherwise) contract should slow the process and give you time to check in with your provider on the details.

What are some specific scams we’ve seen rife in 2023?

Energy Bill Support Scam

Potential victims are contacted by scammers posing as ‘UK Help’ or ‘GOVUK’ (with multiple variations discovered) while claiming to represent the official UK government. Typically, this contact occurs through messaging services like iMessage. The scam message usually states that the recipient is eligible for a discounted energy bill under the Energy Bills Support Scheme and includes a link to apply. Upon clicking the link, individuals are directed to a landing page that mimics the appearance of an official UK government website. On this fraudulent page, they are prompted to provide personal information, including their full name, phone number, date of birth, home address, and email address, under the guise of determining eligibility. Subsequently, victims are asked to divulge their energy supplier details along with their card number, expiry date, and ‘security’ code. The ultimate objective of these scammers is to gain access to your banking and private information, which they can exploit for their financial gain. The information requested in this scam could be exploited to impersonate you and gain unauthorized access to your accounts. Another similar scam impersonates the energy watchdog Ofgem, and it has already generated over 1500 reports to the National Fraud Intelligence Bureau (NFIB). These scams take advantage of the heightened concerns many UK households are experiencing due to the ongoing cost of living crisis.

How can I prevent phishing and scams?

Being aware of potential threats and why people may target you is the first step to protecting yourself and your business against fraud,  but there are a number of other ways that you can ensure you are speaking to who you wants to be, such as…

  • Visits to your property, or phone call identification.

In any scenario, a provider should visit your business property occasionally to do a number of tasks from checking meter readings to collecting outstanding payments and doing maintenance. They will always have staff ID and branded uniforms, especially those from Morrison Data Services (MDS) who read meters on behalf of big companies such as EDF Energy. If you feel as though you are unsure and would like to check the identity of a worker with MDS, you can call them on 0191 201 3791. If the partner company is not MDS, you can call EDF directly to verify the information on 0333 200 5100. EDF also provide a password for you that the visitor is expected to provide before entering your property to ensure that they are who to claim to be.

  • Know where to reach out to for advice and guidance.

The Take Five and Cyber Aware campaigns have practical advice on their website, whilst suspicious activity can be reported to Action Fraud. The Centre for Protection on National Infrastructure also posted this useful video on phishing and spear phishing.

Some simple tips to avoid scams;

  1. Don’t respond to cold calls from your supplier, or others that are unable to give you personal details that prove to them who they are.
  2. Don’t give out your bank details or your personal details: In most cases, a body you are contracted with should already have this information in a secure location.
  3. Check email addresses or phone numbers contacting you: Most businesses have one ongoing email used for contacting clients, for example consumeraffairs@ofgem.gov.uk – Ask yourself if the details you have now are the same as those you may have received confirmation emails or account updates from previously.
  4. Check letters for branding: Businesses should always send letters with a header attached.
  5. If in doubt, shout: If you are in any doubt, then call Citizens Advice on 0808 223 1133or online.
  6. If you are being offered a rate that is too good to be true, pause and consider whether or not it is likely to be a scam. You can always hang up and contact the supplier yourself to check whether the rate given is possible for you.
  7. Check the market yourself; do your research before signing contracts with any broker by checking in on recent market trends and rises or falls in prices that could impact bulk buying the product.
  8. Check for any letters or emails of notification on changes to your account; if you have not received these, it is likely you are the victim of phishing, but
  9. Consider whether you have been provided with security questions. While you may occasionally receive a phone call from your provider to discuss your account, they should always verify themselves through a variety of questions that have been set previously. This means that you should recognise them. You should never be asked for your passwords or bank details, and you will never be expected to make an upfront payment to sign up to a special tariff or contract.
  10. Don’t open attachments until you know it is reliable.
  11. Use reputable sources to ensure that the information you are being given is accurate and up to date.

For more information about this post and how Energy Solutions can help with your Electricity, Gas, or Water, click on the links, or check out the contact details at the bottom of the page.

For more information about this post and how Energy Solutions can help with your Electricity, Gas, or Water, click on the links, or check out the contact details at the bottom of the page.