How to Protect Utility Customers from Scams: A Conversation with Utilities United Against Scams Executive Director Michelle Martinez
With the rapid advancement of AI and other technologies, utility customers are going to face increasing and more deceptive scam efforts than ever before. This, of course, means that utility organizations will have an increasingly difficult task of educating and informing customers about utility-related scams they may encounter.
Utility Security magazine’s Editor-in-Chief, Curtis Marquardt Jr., sat down with Monica Martinez, the executive director for Utilities United Against Scams (UUAS). UUAS is a consortium of more than 150 U.S. and Canadian electric, water and natural gas utilities and trade associations that is dedicated to combating imposter utility scams by providing a forum for these participating organizations to share data and best practices as well as allow them to work together to implement initiative to inform and protect their customers.
Monica discussed what scams are most common today, what new scams are emerging and what utilities can do to inform and educate their customers.
Curtis Marquardt Jr.:
Hello, Monica. Please tell our readers more about yourself and more about Utilities United Against Scams (UUAS).
Monica Martinez:
Certainly! I’m the executive director of Utilities United Against Scams (UUAS). UUAS was founded a little over six years ago because many utilities weren’t addressing scams targeting their customers.
We started as a small group led by Duke Energy, discussing ways to educate and empower consumers and thwart future scams. That’s how UUAS came to be. Today, we have over 140 member utilities across North America, in both the U.S.and Canada.
Curtis Marquardt Jr.:
When I discovered your organization, it made me think about the rise of artificial intelligence (AI) and how it’s making things easier and faster, but unfortunately, also for scammers who create more believable phishing emails. Can you elaborate on how AI is making it harder to spot phishing scams?
Monica Martinez:
Absolutely, and you’re right. AI is making life both easier and more difficult for everyone. A key aspect of scams involves impersonation, often of companies or individuals. With AI, these impersonations are becoming harder to distinguish from genuine interactions. Scammers can now communicate better by using tools like ChatGPT, eliminating common giveaways like typos in emails.
AI and other technologies are making scams more believable, not just in phishing emails but also in text message scams, voice impersonations and fake websites. All of these are becoming harder to identify with the rise of AI.
Curtis Marquardt Jr.:
Are you seeing any other emerging technologies or trends that utilities and their customers should be aware of?
Monica Martinez:
Absolutely. A major trend we’re seeing involves search engine optimization (SEO) scams. Customers searching for their utility company online, like “energy service” or “water service,” might encounter a credible-looking website at the top of results. This is often a paid ad directing users to fake websites designed to steal personal and financial information, including credit card numbers and banking details.
Curtis Marquardt:
Scammers are persistent! These tactics are certainly deceptive. Moving beyond these new methods,what are some common scams used by bad actors to target utility customers?
Monica Martinez:
The fake websites I mentioned are prevalent. We also see scams involving starting new utility services. For example, someone moving into a new apartment might encounter minimal or no fees to activate electric service with the actual utility company. However, some companies act as middlemen, charging exorbitant fees to activate service while posing as the utility company. Text message scams remain an issue as well. Overall, the online space presents the biggest source of scams for utility customers.
Curtis Marquardt Jr.:
Scams also occur through door-to-door solicitations. What are the best strategies for informing customers how to identify these scams?
Monica Martinez:
The key is to encourage customers to take their time. Scammers often pressure individuals into immediate action. Legitimate businesses rarely demand such urgency.
For example, a scammer might claim service will be shut off within minutes and require payment within 30 minutes. These pressure tactics coerce customers into surrendering personal information. We advise utilities to instruct customers to slow down, verify the information, and reference their bill. Customers should dismiss the solicitor or hang up, then directly contact the utility to confirm the information.
Additionally, utilities can educate customers on methods to block unwanted calls which will help in mitigating some scams.
Curtis Marquardt Jr.:
So, utilities should proactively inform customers about their standard business practices and emphasize the importance of not being rushed into providing personal information to potential scammers, as you’ve described.
Monica Martinez:
Absolutely. At Utilities United Against Scams (UUAS), we share best practices to ensure comprehensive customer education and consistent messaging across North America. We identify utilities with established best practices and collaborate with state attorney general offices and law enforcement.
These partnerships allow us to track emerging scam trends and disseminate information not only to utilities but also to law enforcement, who can further amplify warnings to the public.
Curtis Marquardt Jr.:
Scammers are leveraging technology. How are utilities using technology to combat these scams?
Monica Martinez:
One approach involves text message alerts. This creates a direct communication channel between utilities and customers. Utilities can warn customers about scams active in their area through these alerts. Additionally, larger utilities are developing smartphone apps that provide customers with quick access to information and push notifications about scam alerts.
Curtis Marquardt Jr.:
Thank you for your time today. How can utilities not currently working with UUAS get involved?
Monica Martinez:
We encourage such organizations to visit our website, utilitiesunited.org, for valuable information, best practices and membership opportunities. We offer free resources, including toolkits, sample social media messaging,and other tools to empower utilities to educate their customers about scams.
A collaborative effort is key. Increased participation strengthens our collective fight against scams.
Curtis Marquardt Jr.:
That’s an excellent way to conclude this interview. I commend your organization’s efforts to unite stakeholders and create a collaborative front against these ever-increasing scams, whether perpetrated in person, online, or via text message.