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Utility-imposter scams on the rise

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IPB News

Indiana Michigan Power is warning consumers about an alarming increase in scams so far this calendar year.

According to the company, by the end of June I&M received 240 reports of efforts to target customers in Indiana and Michigan, 125 more reports than in all of 2023.

These scams included an uptick of calling or texting customers with a caller ID that reflects I&M’s company name.

In these efforts, scammers ask for personal financial information claiming they will mail checks for overpayment to an account, they threaten disconnection and demand payments, or ask for immediate payment through a mobile banking app.

A new twist is to tell homeowners they need to pay for a new meter, and demand payment before the meter is installed.

There are also reports of scammers approaching customers in-person, according to the release.

The in-person scams are often the same as the ones over the phone.

Officials with the Better Business Bureau say the pressure to pay immediately is often a good way to spot a scam:

Tips to spot this scam 

  • Prepaid debit cards and wire transfers are a red flag. If a caller specifically asks for payment by prepaid debit card, gift card, a digital wallet app, or wire transfer, this is a huge warning sign. Legitimate utility companies will often accept a check or credit card.  
  • Pressure to pay immediately. Utility scammers will press for immediate payment, typically within a short time frame under an hour, and may try high-pressure tactics to intimidate consumers into giving them personal and banking information.

Protect yourself against this scam

  • Call customer service. If you feel pressured for immediate action by an unknown caller, hang up the phone and call the customer service number listed on your actual utility bill. If the scammer provided you with a utility bill, it could be fake, so be sure to go back to a previous, real utility bill and confirm that the phone number you will be calling is correct. This will ensure you are speaking to a real representative from your utility company. Never give your personal or banking information to an unverified or unsolicited caller.
  • Never allow anyone into your home unless you have scheduled an appointment or reported a problem. It is rare that a legitimate utility company will show up unannounced and demand entry into your home. Also, ask utility employees for proper identification before letting them enter.

If you have been hurt by a scam, the BBB offers this toolkit for assistance.

Rebecca manages the news at WBOI. She joined the staff in December 2017, and brought with her nearly two decades of experience in print journalism, including 15 years as an award-winning reporter for the Journal Gazette in Fort Wayne.