Utility Scam

US utilities and the FTC began warning of disconnect-threat impostor calls around 2010-2012, and more than 100 utilities formed Utilities United Against Scams in 2016 in the United States and Canada.

Impostor calls threatening to cut off power or gas unless a bill is paid immediately became common in the US around 2010-2014 as caller-ID spoofing and prepaid cards made them easy; utilities formed the Utilities United Against Scams coalition in 2016 in response. The scam also has an in-person form - fake 'utility workers' who talk their way into homes or collect bank details - and an account-fraud form in which criminals open utility accounts in stolen identities. Utility impersonation sits inside the FTC's business-impostor category, which reached $3.5 billion in reported losses in 2025.

A caller, often with a spoofed caller ID matching the local utility, says the customer's account is overdue and a crew is on its way to disconnect service within the hour. Payment is demanded by prepaid card, Zelle, crypto ATM or a 'new' payment portal. Variants offer refunds for 'overbilling' to harvest card details, or claim a meter must be replaced for a fee. In-person versions involve men in high-visibility vests posing as PECO or water-department staff to collect cards and PINs from elderly residents, as in the 2026 Philadelphia case. Small businesses are targeted at their busiest hours to force a snap decision.

A spoofed number and a script are all that is needed, and the fear of losing power in winter or during a shift makes victims pay in minutes; the BBB's median loss is only $435, but volume is huge and the same crews can also hit small businesses for thousands. Almost no phone-based utility impostor is ever charged; prosecutions like Philadelphia's target in-person crews, and the larger utility-fraud sentences (Brown) concern service theft rather than impersonation.

No body publishes a utility-only total; the FTC's impostor category, which includes utility impersonation, reached $3.5 billion in reported losses in 2025 (FTC, 2026), and PG&E alone logged $190,000 lost by 200+ customers in 2025. The biggest recent single case is the Philadelphia crew's $500,000-plus from 150 seniors. Non-money harm: elderly victims hand over PINs and identities, and legitimate disconnect notices are ignored.