Utility scams in this age of AI: How to spot and avoid fraud

Someone calls claiming to be from your utility company. They say your service will be cut off if you don't pay them immediately. Real utility companies do not do this. But scammers want to scare you into paying before you have time to confirm what they are telling you. And scammers are now using Artificial Intelligence (AI) to craft frauds that are difficult for consumers to detect. Learn how to protect yourself.

Beware of these common scam tactics

• Discussion threats: Scammers claim your service will be cut off without immediate payment.
• Caller ID spoofing: Fraudsters use software to make their calls appear legitimate.
• Overpayment claims: They may say you are overpaid and ask for personal or banking information to issue a refund.
• Smishing: Scammers send fake text messages that seem to come from your utility company.
• Phishing attempts: Beware of emails that look like bills; always verify the sender's email before clicking links

If you have any doubt about the status of your electric service, call your utility company using the customer service phone number on their website.

Watch for the following red flags

• High-pressure tactics that demand urgent action.
• Unusual payment method requests (wire transfer, gift cards, reloadable cards or cryptocurrency).
• Poor grammar, misspelling and suspicious email addresses.

AI use enhances utility scams

By leveraging AI-powered techniques, utility scammers can create sophisticated and convincing frauds that are hard for consumers to recognize and avoid.

• AI helps scammers craft convincing emails that appear to be from legitimate utility companies and include the use of company colors and logos.
• Scammers us AI to create realistic-looking utility company websites that are nearly indistinguishable from legitimate ones.
• AI technology can clone the voices of utility company representatives, making phone scams convincing.
• AI analyzes victims' online presence and social media to create highly personalized spam related to your utility services.
• Scammers create geographically targeted online ads that appear when users search for keywords related to their energy bills.
• Scammers use AI to launch large-scale utility scam campaigns quickly and efficiently.

Protect yourself

• Take your time: Don't rush into payments or actions.
• Verify any communications by calling your utility company directly using the number on your bill.
• Never share personal information. Legitimate companies won't ask for sensitive details over the phone.
• If someone claims to be a utility worker, call the utility office to confirm.

If you suspect a scam, report it to your utility company and the FTC at ReportFraud.ftc.gov

Remember, legitimate utilities will provide multiple notices before disconnection. If you are in doubt, let your utility company know so they can take proactive measures to both protect you and others from becoming victims.