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Utility Company Scam

A caller claims to be the electric, gas, or water company and says your service will be cut off within the hour unless you pay right now, usually by gift card or app. Utilities do not run hour-long ultimatums or take gift cards. The clock is fake; it exists to stop you from thinking.

Losses: Part of $660 million in business impersonation losses
Targets: Homeowners, small business owners
Updated: 2026-01-06
Also known as: Electric Company Scam · Power Shutoff Scam · Utility Disconnect Scam
01

How It Works

Scammers create urgency by threatening immediate service disconnection: **Phone version:** 1. Caller claims to be from your utility company 2. Says your account is past due and service will be cut within the hour 3. Demands immediate payment via gift cards, wire, or crypto 4. May spoof the utility company's phone number **In-person version:** 1. Someone comes to your door in a uniform 2. Claims they're there to shut off service for nonpayment 3. Offers to take immediate payment to prevent shutoff 4. May actually disconnect service to seem legitimate
How Scammers Make Contact
Phone callsIn-person visitsText messages
02

Warning Signs & Red Flags

  • Threat of immediate shutoff (real utilities give advance notice by mail)
  • Demand for payment via gift cards, wire, or cryptocurrency
  • Caller won't let you hang up to verify the call
  • No prior written notice of past-due account
  • Request to pay a different amount than your normal bill
  • Caller becomes aggressive when questioned
03

Real-World Example

"A man called saying he was from the electric company and my power would be shut off in 45 minutes unless I paid $487 right now. He said to go to CVS and buy gift cards. I was panicking — I have medical equipment that needs power. I bought the cards and gave him the numbers. My power was never at risk."

— Utilities United Against Scams
04

How to Protect Yourself

  • Know that utilities give written notice before disconnection
  • Hang up and call your utility using the number on your bill
  • Never pay via gift cards — utilities don't accept them
  • Don't let someone into your home without verification
  • Ask in-person representatives for ID and call to verify
  • Set up autopay to avoid legitimate late payments
05

What To Do If You're a Victim

  1. 1Contact your actual utility company
  2. 2If you paid with gift cards, report to the gift card company
  3. 3File a police report
  4. 4Report to your state Public Utility Commission
  5. 5Report to FTC at ReportFraud.ftc.gov
Report This Scam
FTC Report Fraud FBI IC3 Identity Theft
?

Frequently Asked Questions

What is Utility Company Scam?

A caller claims to be the electric, gas, or water company and says your service will be cut off within the hour unless you pay right now, usually by gift card or app. Utilities do not run hour-long ultimatums or take gift cards. The clock is fake; it exists to stop you from thinking.

What are the warning signs of Utility Company Scam?

Threat of immediate shutoff (real utilities give advance notice by mail). Demand for payment via gift cards, wire, or cryptocurrency. Caller won't let you hang up to verify the call. No prior written notice of past-due account. Request to pay a different amount than your normal bill.

How do I protect myself from Utility Company Scam?

Know that utilities give written notice before disconnection. Hang up and call your utility using the number on your bill. Never pay via gift cards — utilities don't accept them. Don't let someone into your home without verification.

What should I do if I'm a victim of Utility Company Scam?

Contact your actual utility company. If you paid with gift cards, report to the gift card company. File a police report. Report to your state Public Utility Commission.

How serious is this threat?

We rate this a real but moderate risk. Reported losses: Part of $660 million in business impersonation losses. Most exposed: Homeowners, small business owners.

Can I get my money back?

Recovery depends on how you paid. Credit card payments may be reversed through chargebacks, while wire transfers and cryptocurrency are rarely recoverable. Report immediately to your bank and file complaints with the FTC at reportfraud.ftc.gov and the FBI IC3 at ic3.gov.

How do I report Utility Company Scam?

Report to the FTC at reportfraud.ftc.gov. For internet crimes, file with the FBI IC3 at ic3.gov. For identity theft, visit identitytheft.gov. You should also contact your local police and your bank.
Sources & References
  1. 01Utilities United Against Scams
  2. 02FTC: Utility Scams
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