Utility Shutoff Scams: 'Pay Now or Lose Power' Calls

The call is short and alarming: your electricity will be cut off in 30 minutes unless you pay a past-due balance right now. It’s designed to make you panic, especially in the heat of summer or the cold of winter. The FTC is clear: if an unexpected call, text, email or visitor from your utility threatens to shut off service unless you pay immediately, it’s a scam.

Utility scams often start with a phone call. For other kinds, see our guide to phone scams.

How do utility scams work?

Scammers pretend to be your gas, electric or water company. They might call, text, email or show up in person, and threaten to shut off service if you don’t pay immediately. The FTC says they want to scare you into paying before you have time to check.

The payment demand is the giveaway. The FTC says scammers often insist you pay by wiring money, using cryptocurrency, using a payment app, or loading money onto a gift card and reading them the numbers, because those methods make it hard to get your money back.

EXAMPLE — SCAM

Today 4:05 PM●●● ▮

Voicemail transcript (713) 555-0152

This is the disconnection department at City Power and Light. Your account is 62 days past due and service is scheduled to be disconnected in 45 minutes. To stop the disconnection, call us back immediately at 713-555-0152. Payment must be received today by prepaid card or mobile payment.

Some variations to know:

• Fake search ads. The FTC warns that the top search results for your utility are often paid ads, and dishonest businesses sometimes use them to impersonate real utilities. Even if they do pay your bill, they may add fees you wouldn’t otherwise owe.
• Door-to-door “workers” who say they need payment or access to your home.

Would a utility really cut service with no notice?

Not like this. The FTC says real utility companies won’t demand immediate payment to avoid same-day disconnection. If you’re truly behind on your bill, your utility will contact you through its normal billing process, and you can confirm any balance by calling the number on your bill.

How do you check your account safely?

1. Hang up, or don’t respond to the text or email. Don’t click any links.
2. Find the real number yourself. Use the number on your paper bill or the utility’s official website.
3. Be careful with search results. The FTC says to scroll past paid ads to the unpaid results to make sure you have the right website or number.
4. Ask about your account. Questions about balances, pending payments or billing issues can all be answered through the real number.

Don’t trust caller ID. Scammers can make a call look like it’s coming from your utility. See caller ID spoofing.

What if someone comes to your door?

The FTC says that if someone shows up claiming to be from your utility and threatens to shut off your service unless you pay, don’t let them pressure their way into your home. One simple step of our own: keep the door closed and call the utility at the number on your bill to ask whether it sent anyone.

What if you already paid?

Act quickly:

• Gift cards: contact the gift card company right away and keep the card and receipt. See gift card scams.
• Wire transfer, payment app, card or crypto: contact the company you used and ask it to stop or reverse the payment.
• Report it to your utility (using a number you know is real), the FTC at ReportFraud.ftc.gov, and your state attorney general.

Our first-hour checklist after a scam covers each payment method, and our guide to reporting a scam call lists other places to report.