Every day, people fall victim to bill payment scams. That means more than losing hard-earned money. It means losing peace of mind.
The best defense against a scam? Being well-informed.
Nobody wants to fall for a hustle.
So why does it keep happening?
People often fall for fraudsters for several reasons. For starters, they create a sense of panic to pressure people to act quickly. For example, they may threaten that a utility will be shut off without immediate payment. Secondly, fraudsters also exploit trust. They primarily do so by mimicking familiar organizations, such as your utility company or bank.
Ultimately people keep falling for scams because they’re human. Most people want to believe in the goodness of others; bad actors exploit that trust.
Scammers are incredibly adaptable, constantly refining their methods, but certain archetypes consistently resurface. Knowing these common types of scams is your first line of defense.
This utility scam is one of the worst. It often targets vulnerable individuals, such as older adults, and small businesses.
It typically begins with a call from someone claiming to be from your local power, gas, or water company. The voice might sound official. The caller ID might even display the utility company name (fraudulently through a technique known as spoofing). The “utility worker” tells victims that their utility bill is overdue and, even worse, that their home or business will be disconnected from services immediately… unless they pay right now.
The bad actor might demand unusual payments, like gift cards, prepaid debit cards, or cryptocurrency.
Sometimes, the scammers won’t call. They will instead send the potential victim a link within a text message or email. The link goes to a site that mimics the real utility company‘s payment portal. In actuality, it’s a phishing site designed to steal the victim’s banking details.
This scam often starts with a notification that claims the potential victim has overpaid a bill and is due a refund. They might send the person a check for more than the “refund” amount. Then, the bad actors ask the victim to deposit it and then send the “excess” back to them via a wire transfer or gift card.
The problem?
The initial check is fraudulent; it will bounce after the victim has already sent their real money to the scammer.
Another variation of this scam involves a “refund” for a service the victim never subscribed to. The bad actors ask for bank details, credit card number, or other sensitive information to process the refund. Instead of getting the victim money, though, they’ll use that information to drain their account or make unauthorized purchases.
This con works by potential victims receiving a pop-up on their computer or a call claiming to be from a major tech company like Microsoft or Apple. The messages warn of a severe virus or security breach. The people the potential victims communicate with convince the victim to give the bad actors remote access to the computer. Once inside, they “discover” more fabricated problems and demand payment for unnecessary “repairs” or “security subscriptions.”
They might even claim victims owe them a monthly fee for continued “protection” and set up recurring fake bills. They may even outright steal the victim’s banking information obtained during the “fix.”
This tactic is a classic for a reason: it works. The potential victim gets a valid-looking text or email. The message contains alarming language about a security breach, an overdue payment, or an account suspension. It ends with an urgent call to action: clicking a link.
That link doesn’t lead to a legitimate service provider, though. It instead leads to a phony website that steals bank account numbers, login credentials, or some other form of personal information. Once scammers have it, they can access the victim’s real accounts and drain them.
Verification is key. Do not use the contact information provided from an unexpected call, email, or text about a bill.
Instead, look up the official phone number or website for the organization (such as your utility company or bank) and contact them directly.
Remember: a legitimate company will never object to you verifying their identity.
Scammers thrive on urgency. Any demand for immediate payment (especially with threats of service disconnection or legal action) is a massive red flag. Legitimate companies provide ample notice for overdue bills and multiple payment options. Take a deep breath. Pause. Think critically. Don’t let fear or panic dictate your actions.
No legitimate utility company, government agency, or reputable business will ever demand payment via gift cards, cryptocurrency, or wire transfers for an overdue bill. These payment methods are virtually untraceable, which is precisely why fraudsters favor them. If a “utility employee” requests these payment methods, you are dealing with a scammer.
Take steps to secure your information, including:
- Be careful about where you enter your personal and financial details online.
- Only provide information on secure “https” websites.
- Use unique passwords for all your accounts.
- Enable two-factor authentication (2FA) wherever possible.
These steps make it much harder for scammers to access your accounts (and all the personal data associated with them), even if they somehow get your password.
Familiarize yourself with how your utility companies, banks, and other service providers communicate.
Ask yourself the following questions:
- Do they typically send bills via email or physical mail?
- What does their official bill statement look like?
- What payment methods do they accept?
Any deviation from their usual practices should raise your suspicion. For instance, if your utility service provider always sends paper bills, a suspicious email notification about an overdue bill should raise red flags.
Bad actors frequently target older people, who may be less familiar with digital communication or more trusting of others. That means that, if you have an aging loved one in your life, you should have an open conversation with them about common scams and how to take precautions.
If you or a loved one paid a con artist via credit card, debit card, or bank transfer, report the fraudulent transaction to your financial institution right away. They may be able to stop the payment or reverse the charges.
- Federal Trade Commission (FTC): Report the scam at reportfraud.ftc.gov.
- FBI’s Internet Crime Complaint Center (IC3): If it was an online scam, file a complaint at ic3.gov.
- Local Law Enforcement: File a local police report. While it might not always lead to an arrest, it creates a record and can be useful for disputing charges.
If you suspect that any financial or utility accounts have been compromised, change your passwords immediately.
Regularly check your credit card and bank statements for any suspicious activity.
You can place a fraud alert on your credit report, giving you added peace of mind that potential con artists will be caught if they attempt to steal your identity or use your money.
Billing scams trick victims into paying fake invoices or charges. Scammers may pose as utility companies, government agencies, or service providers, demanding urgent payment. They often use phishing emails, fake websites, or spoofed phone numbers (spoofing) to appear legitimate.
Recent bill-related hustles include:
- Fake utility disconnection threats
- Fraudulent subscription renewals (e.g., antivirus or streaming services)
- QR code scams on fake bills.
- Impersonating banks or government agencies using AI-generated voices or logos
Ways to check the legitimacy of a payment or payment request include:
- Check the sender’s contact details against official sources
- Don’t click on links from random emails or texts
- Call the company directly using a verified number
- Look for billing history in your official account portal
Be wary of demands for gift cards, wire transfers, or cryptocurrency
Ways to protect yourself from fraudulent charges include:
- Enable two-factor authentication
- Monitor billing statements
- Never pay through insecure methods
- Report suspicious activity
- Educate yourself and your loved ones
- Keep software and security tools updated
- Pause and verify
Scammers are constantly evolving, but their core tactics remain the same: pressure, deception, and exploiting trust. Your best defense against bill payment scams is a proactive approach fueled by knowledge and a healthy dose of skepticism. Remember, legitimate organizations will never demand immediate payment through unusual methods or threaten immediate service disconnection without proper notice. Stay vigilant, verify everything, and protect your hard-earned money.
Disclaimers: This article is for informational purposes only and does not constitute financial advice.