Michigan Utility Customers Targeted by Scams as Fraud Rises

Consumers in Michigan are facing a surge in scams targeting utility customers, with fraudsters threatening service shutoffs unless immediate payments are made. The issue has prompted a warning from Consumers Energy, a major utility provider based in Jackson, Michigan. The company reported that many customers have alerted them to these deceitful practices, which have become increasingly sophisticated.

Jim Beechey, the vice president of information technology and security at Consumers Energy, emphasized the need for vigilance among customers. “We know most people already are careful not to give their money and personal information to strangers,” he stated, urging consumers to remain alert to the persistent tactics of these criminals.

Typically, the scam involves a call or email from someone impersonating Consumers Energy, often using a spoofed phone number that appears legitimate. The caller demands immediate payment to prevent a power shutoff, frequently insisting that payment be made via debit or gift cards. Consumers Energy clarified that it does not request payment or credit card information over the phone.

The problem extends beyond Michigan. The Federal Trade Commission has issued alerts regarding such scams, advising individuals never to wire money or use gift cards or cryptocurrency for payments. Additionally, AAA has noted a rise in utility frauds, with some thieves even going door-to-door, posing as utility workers and demanding payments for equipment upgrades.

In one tragic incident last fall, a 72-year-old man from Oakland County lost his life due to a similar scheme. During a severe heatwave, fraudsters utilized the internet to mislead customers by posting fake contact numbers, which could lead unsuspecting individuals to the scammers instead of the actual utility company. Personal finance columnist Susan Tompor highlighted the risks associated with online searches for utility numbers, warning that it could result in significant financial loss.

In response to the growing threat, over 150 electric, water, and natural gas utilities across the United States and Canada have joined forces under the initiative called Utilities United Against Scams. This coalition has published resources, including a Consumer’s Guide to Impostor Utility Scams, and has established a Utility Scam Awareness Day, typically observed in November, to educate the public about these financial threats.

Ahead of last year’s Utility Scam Awareness Day, Dana Nessel, the Michigan Attorney General, issued a warning about the tactics used by scammers. “Scammers often bully utility consumers, threatening to shut off their gas or electricity to coerce them into handing over personal or financial information,” she said. Nessel emphasized that with the right information, customers can learn to identify and report these predatory scams.

Despite the warnings, some individuals remain vulnerable. Consumers Energy encourages anyone who believes they have fallen victim to a scam to contact them at 800-477-5050 to report the incident. If credit card payments were made, victims may be able to recover their funds by promptly notifying their banks. Unfortunately, recovery is less likely for wire transfers, gift cards, or cryptocurrency payments.

Additionally, Consumers Energy recommends that individuals report any suspicious calls to local law enforcement agencies, even if they did not fall for the scam. Such reports can assist law enforcement in capturing the perpetrators.

As utility scams continue to proliferate, consumers are urged to stay informed and cautious. The increased awareness and proactive measures can potentially protect many from becoming victims of these fraudulent practices.