Log in

Scams

Arizona utilities warn of reported scams increase

Utility impersonators prey on vulnerable with new tactics

Posted 6/25/21

As temperatures, and utility bills, soar across the Valley, so does the number of scammers preying on the community’s most vulnerable.

You must be a member to read this story.

Join our family of readers for as little as $5 per month and support local, unbiased journalism.


Already have an account? Log in to continue.

Current print subscribers can create a free account by clicking here

Otherwise, follow the link below to join.

To Our Valued Readers –

Visitors to our website will be limited to five stories per month unless they opt to subscribe. The five stories do not include our exclusive content written by our journalists.

For $6.99, less than 20 cents a day, digital subscribers will receive unlimited access to YourValley.net, including exclusive content from our newsroom and access to our Daily Independent e-edition.

Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.

Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.

Sincerely,
Charlene Bisson, Publisher, Independent Newsmedia

Please log in to continue

Log in
I am anchor
Scams

Arizona utilities warn of reported scams increase

Utility impersonators prey on vulnerable with new tactics

Posted

As temperatures, and utility bills, soar across the Valley, so does the number of scammers preying on the community’s most vulnerable.

The Maricopa County Attorney’s Office, led by Allister Adel, is warning residents of an increase in utility scammers impersonating companies such as Arizona Public Service Co. and Salt River Project in an attempt to get payment for alleged overdue bills.

Last month alone, approximately 246 commercial and residential customers reported a utility scam resulting in a loss of $3,000. One customer made a $350 payment to scammers, according to a news release from the office.

“Utility scams occur all year long, but they do increase significantly over the summer when we rely on our electricity and water the most,” said Vanessa Ceja-Cervantes, community affairs coordinator for MCAO. “The last thing anyone wants to happen is that their electricity or water gets turned off during a day when temperatures are over 100 degrees and when kids are home for summer break.”

Utility scammers often threaten to shut off access to water, electricity or gas unless they are paid immediately — sometimes within an hour. In reality, utilities will send multiple notices in the mail before any such action is taken.

Scammers will often ask to be paid through Zelle, Venmo, PayPal, a prepaid credit card, gift card, or even Bitcoin. Utility companies never use these payment methods.

Additionally, SRP and others have committed to suspending disconnects during times of extreme heat and will work with customers struggling to pay monthly bills.

“Scammers rely on panic and fear to get an immediate response and take advantage of others,” said Ceja-Cervantes. “The best way to avoid falling victim to scams is to never rush into any type of transaction that involves sharing your personal or financial information. Ask someone you trust for advice and do your research before handing over your money or information.”

The County Attorney’s Office encourages anyone who thinks they might be the target of a scam to contact local law enforcement, the Federal Trade Commission or the Arizona Attorney General’s Office so scammers can be held accountable.

According to Carisa Woolstenhulme, manager of customer credit services for SRP, utilities see an influx of scams heading into the holidays and months with extreme heat when customers become more reliant on their power and air conditioning. That vulnerability has only been exacerbated by the COVID-19 pandemic.

“During these times, scammers understand customers are more reliant on their power and air conditioning and tend to be more easily coerced into paying money to avoid a perceived power disconnection,” she said. “Anyone is susceptible to scams, though SRP notices that elderly and more vulnerable populations fall victim to these attempts more often. Scammers have gotten more sophisticated in their efforts and are good at creating a sense of urgency and making customers believe they need to take immediate action.”

While the number spikes during the summer months, Woolstenhulme notes that these scams are present throughout the year and can happen by phone, text, email or even in-person visits. She said the number of utility scams is likely much higher than has been reported. During the past three years, SRP has received an average of approximately 3,000 scam reports each year; the number of reports are increasing each year.

“There are undoubtedly more scam attempts occurring than what is reported to SRP,” said Woolstenhulme. “We only know what customers tell us, and we imagine there are numerous customers who simply hang up on scammers. It’s a numbers game for scammers. The more attempts they make, the more victims they’ll get.”

Woolstenhulme said that if a customer isn’t sure they’re speaking with SRP, they can always call the number on their bill to learn their account status.

A spokesperson for APS said families and the elderly aren’t the only ones who fall victim to scams.

“They also target small businesses threatening to shut off power during busy or important times, if not paid immediately,” said Jill Hanks, who named a restaurant’s lunch rush, late afternoon at a gym and shops during December holiday shopping as examples of times small businesses are often targeted.

Hanks also pointed out scammers are becoming more technologically sophisticated in reaching potential victims.

“While scammers may use different methods from texts, calls, emails or knocking on someone’s door, one scam that is becoming more common, and not just with utilities, involves spoofing,” she said. “That’s where scammers and robocallers use technology to modify what phone number shows up on caller IDs. It may appear that APS or another utility is calling you. Then, they often threaten [that] power will be disconnected within an hour if immediate payment is not made.”

Like SRP, APS recommends reporting potential scammers on its website and to stay alert during the summer months.

“It’s heartbreaking to hear the stories of how scammers prey on people, especially the most vulnerable in our community,” said Hanks. “We encourage customers to be alert and verify. If you are ever in doubt about whether something is fraudulent, hang up the phone, delete the suspicious email or text, or shut the door.”