Greg's Corner

Deep freeze scam chills victims

By Greg Collier

Recently, a large part of the country has experienced extreme winter weather in some form or another. Whether it’s a major winter storm, or sub-zero temperatures, many Americans are struggling to deal with the winter extremes. With the fear of potentially losing power or heat front in the minds of many, this has been a perfect opportunity for scammers.

One scam that becomes immediately prevalent during extreme weather emergencies is the shut-off scam. Shut-off scams typically involve fraudsters posing as representatives of a utility company, such as electricity, water, or gas providers. Typically, scammers contact individuals by phone, claiming to be from the utility company. The scammer will create a sense of urgency by stating that the individual’s utility service is about to be disconnected immediately due to an unpaid bill or some other issue. To avoid the supposed disconnection, the scammer will demand immediate payment. They may instruct the victim to pay using unconventional methods, such as prepaid debit cards, wire transfers, or cryptocurrency.

It’s not just individuals who are targeted in this scam. Essential businesses also find themselves victims of shut-off scams. For example, a daycare in Texas recently lost $5000 to a shut-off scammer while worrying about the families who depend on their service.

Scammers always want to instill a feeling of fear into their victims. This allows them to dictate the situation with a panicked victim. However, it only takes a little bit of knowledge to thwart shut-off scammers. No legitimate utility company will ever threaten termination of service within an extremely short amount of time, like 15 minutes. Legitimate utility companies typically provide reasonable time for bill payment. Be suspicious if the caller insists on immediate payment using unconventional methods.

In some parts of the country there are winter or cold weather disconnect moratoriums, also known as “winter protection” or “cold weather rule,” which prohibit utility disconnections during specified periods, often during the winter months. These rules are designed to prevent potential health and safety hazards associated with lack of heating in extreme weather. It’s crucial to check the specific regulations and laws in your locality, as they can differ.

If you suspect a utility shut-off scam, report it to your utility company and local law enforcement. Additionally, you can inform consumer protection agencies, like the Better Business Bureau, to help prevent others from falling victim to similar scams.