Better Business Bureau, Illinois Utilities Warn Families and Businesses about End-of-Year Scams

Rhea-AI Summary

This holiday season, a collaboration between the Better Business Bureau and utility companies aims to raise awareness about increasing scam attempts targeting consumers. Steve Bernas, CEO of the BBB of Chicago, indicates a rise in imposters posing as utility workers. In 2020, Americans lost over $3.3 billion to fraud, with nearly $1.2 billion due to impersonation scams. The initiative coincides with Utility Scam Awareness Week (Nov. 14-20) to educate customers on protective measures, including verifying identification and never disclosing personal information to unsolicited contacts.

Positive

• Utility companies are actively collaborating to raise awareness about scams, helping protect customers.
• Educational initiatives aim to prevent fraudulent activity during the holiday season, historically a peak time for scams.

Negative

• The continuing rise in scam reports and fraudulent activities indicates a growing threat to customers.
• In 2020, the reported fraud losses increased significantly, emphasizing escalating risks.

​Holiday season often leads to increased scam activity

CHICAGO--(BUSINESS WIRE)-- During the holidays, individuals falsely claiming to work for utilities have historically tried to take advantage of people’s busy, end-of-year schedules to scam families and businesses out of money and personal information.

To increase awareness of scams and scam attempts, the Better Business Bureau, along with representatives from ComEd, Nicor Gas, North Shore Gas and Peoples Gas, joined forces today to provide tips to help Chicago-area customers identify scams this holiday season.

Steve Bernas, president and CEO of The Better Business Bureau of Chicago and Northern Illinois states, “The number of reported scams generally rises with the holidays. Nationally, there has been an uptick in people claiming to be utility company workers over the past several years. In fact, they are scam artists who pose as utility workers and who usually target customers through door-to-door visits and phone calls.”

In recent years, scammers have gotten deceptively creative with increased calls, texts, emails and in-person tactics, contacting electric and gas customers asking for immediate payment to avoid service disconnection.

In a door-to-door scam, someone impersonating a utility worker will visit customers’ homes looking to get money and personal or account information. In some cases, the scammer will try to lure the customer out of their home so that another scammer can enter and steal their belongings.

While types of phone scams vary, they usually feature individuals posing as utility employees stating that a customer’s billing cycle has changed and payment is needed immediately, or that the customer’s account is past due and immediate payment is required to avoid disconnection of service.

According to the Federal Trade Commission, consumers nationwide reported losing more than $3.3 billion to fraud in 2020 – up significantly from $1.8 billion from 2019. Nearly $1.2 billion of losses reported last year were due to imposter scams.

Utility representatives weighed in:

• Nichole Owens, vice president of customer channels, ComEd: “With scammers increasing their activity ahead of the holidays, ComEd is committed to helping customers identify potential schemes so they don’t unwittingly send their money and personal information to fraudsters. We’re pleased to join the Better Business Bureau and other local utilities to share tips and advice that can help customers spot these scams and avoid falling victim to them.”
• Pat Whiteside, senior vice president of operations at Nicor Gas: “There are more resources and support available than ever before to help Nicor Gas customers. Together with the Better Business Bureau and local utilities, we are increasing our customers’ awareness, which is the best defense against dangerous scams and tactics.”
• Polly Eldringhoff, vice president, Peoples Gas and North Shore Gas: “The safety of our customers is a top priority in everything we do. That includes helping protect our customers from scammers who may be after people’s personal data and hard-earned money. Raising awareness and educating consumers about the issue is critical to preventing problems.”

ComEd, Nicor Gas, North Shore Gas and Peoples Gas are among 150 U.S. and Canadian energy companies that recognize Nov. 14-20 as Utility Scam Awareness Week, a weeklong annual campaign created by Utilities United Against Scams to raise awareness and help educate customers on the tactics used by scammers.

The Illinois utilities also remind customers that representatives of their companies always carry proper identification and never use aggressive or intimidating tactics to pressure them into making a payment, nor will they ask for cash or a customer’s personal or financial information.

Don’t Get Scammed

Customers can avoid being scammed by taking a few precautions:

• Never provide Social Security, bank or personal information to anyone initiating contact with you claiming to be a utility representative.
• Always ask to see a company photo ID before allowing any utility worker into your home or business.
• When in doubt, check it out. Be skeptical of individuals wearing clothing with old or defaced company logos. If you have any doubts, ask to see a company photo ID.
• Never make payment for services to anyone coming to the door or to anyone calling to demand you to make a direct payment with a prepaid cash card, cryptocurrency or third-party banking app.

Utility customers who suspect or experience fraud should hang up, delete the email or shut the door; then immediately contact local authorities, followed by a call to the utility’s customer care center phone number listed on their billing statement.

BBB of Chicago and Northern Illinois is a nonprofit organization that holds businesses to a higher standard and connect consumers with businesses they can trust. We have served both local Chicago and Northern Illinois consumers and trustworthy businesses for over 95 years. We help protect consumers from fraudulent practices in the marketplace and provide an extensive free database for consumers to see business ratings and reviews for research before they buy.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 100 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com and connect with the company on Facebook, Twitter, Instagram and YouTube.

Nicor Gas is one of four natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Nicor Gas serves more than 2.2 million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. For more information, visit nicorgas.com.

Peoples Gas, a subsidiary of WEC Energy Group (NYSE: WEC), is a regulated natural gas delivery company that serves more than 878,000 residential, commercial and industrial customers in the city of Chicago. You can find more information about natural gas safety, energy efficiency and other energy-related topics at peoplesgasdelivery.com. Follow us on Twitter and Facebook @peoplegaschi.

North Shore Gas, a subsidiary of WEC Energy Group (NYSE: WEC), is a regulated natural gas delivery company that serves more than 163,000 residential, commercial and industrial customers in 54 communities within the northern suburbs of Chicago. You can find more information about natural gas safety, energy efficiency and other energy-related topics at northshoregasdelivery.com. Follow us on Twitter and Facebook @northshoregas.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211116006320/en/

ComEd Media Relations

312-394-3500

Source: ComEd

FAQ

What is the purpose of Utility Scam Awareness Week?

Utility Scam Awareness Week (Nov. 14-20) aims to educate consumers about scams and ways to protect themselves.

How much money did Americans lose to fraud in 2020?

Americans lost over $3.3 billion to fraud in 2020, with nearly $1.2 billion from impersonation scams.

What should customers do if they suspect a scam?

Customers should hang up, delete the email, or shut the door and contact local authorities and their utility's customer care.

Which companies are involved in the scam awareness initiative?

The initiative includes ComEd, Nicor Gas, North Shore Gas, and Peoples Gas.

What precautions can customers take to avoid scams?

Customers should never provide personal information, always ask for company photo IDs, and be skeptical of unsolicited contacts.