Greg's Corner

Utility scammers using new cryptocurrency tactic

By Greg Collier

Utility scams have been on the rise since the start of the pandemic last year and according to most reports, they’re incredibly effective. If you haven’t heard of the utility scam, it’s when a scammer calls you up posing as a local utility company, usually your local power company. They’ll tell you that your bill is past due and if you don’t make a payment right away, your service will be shut off that day. They’ll then ask for payment in some untraceable form like a pre-paid debit card, gift cards, or through a money transfer service. Now, some utility scammers are taking their victims’ money through cryptocurrency and making the victims do all the legwork as well.

With the rising popularity of cryptocurrency came the advent of cryptocurrency ATMs. These public kiosks not only allow someone to buy and sell cryptocurrency like Bitcoin, but they can also send Bitcoin to another person. In Baltimore, the local power company has seen a substantial uptick in their customers falling for the utility scam. However, in a new twist on the utility scam, the scammers are directing their victims to make the phony payments through Bitcoin ATMs located throughout the city. One local business owner was taken for $1,000 in a recent utility scam. Due to the fact that cryptocurrencies like Bitcoin are decentralized and largely unregulated, once that money is gone, there’s usually no getting it back.

Even if you are behind on your utility bill, the utility company will send you several notices in the mail before terminating any service. They will not call you and threaten you with immediate termination. They won’t ask for payment in nontraditional means, either. Requests for payment in gift cards, prepaid debit cards, money transfers, and cryptocurrency should be a dead giveaway that you’re not dealing with the actual utility company.