How to Verify Utility Bills for Your Business and Prevent Payment Fraud

Every small business relies on electricity, water, and internet services to function. But did you know that scammers often pose as utility providers to trick businesses into paying fake invoices? Falling for a utility bill scam can cost your business money and even disrupt your operations.

In this guide, we'll show you how to verify utility payments, spot SME utility fraud, and avoid fake energy bills before it's too late.

How Utility Bill Scams Work

A common tactic is a call from someone claiming to be from your utility provider, insisting that your business is behind on payments and will be disconnected unless you act immediately. Legitimate utility companies don't operate this way, but scammers hope the fear of losing essential services will push you to pay without verifying the claim.

Here's an overview of their tactics:

Fake Disconnection Notices (phone calls, emails, or letters): Scammers may contact you pretending to be from your gas, water, or electricity provider, warning that your service will be shut off if you don't make an immediate payment.
Fake invoices: The documents they send often look convincing, closely resembling real utility bills with company logos and account numbers.
Fake Refund Emails: Scammers may send phishing emails claiming you are due a refund, tricking you into clicking malicious links.
Fraudulent Utility Assistance Programs: Some fraudsters pretend to offer government utility relief programs to steal your personal and financial information.
Unusual payment methods: They might demand payment via wire transfers, reloadable gift cards, or cryptocurrency—methods that are difficult to trace and nearly impossible to recover.

Utility Fraud and Identity Theft

In some cases, utility fraud goes beyond fake bills. If criminals gain access to your personal or business information, they can open new utility accounts in your name. This means they can get gas, electricity, or cable services at another address while leaving you with unpaid bills. Worse, stolen business details can be used to take out loans, file fraudulent tax returns, or open credit lines under your business name.

How Utility Fraud Affects Your Business

Scammers use different tactics to exploit businesses through utility fraud. Here's how it can impact your company:

Recurring fraudulent charges: If a scammer gets hold of your business's financial details, they might use them to sign up for services like cable or internet under your name, leading to unauthorized recurring charges on your business account.
Stolen payment details: If you fall for a scammer pretending to be a utility provider over the phone, they can steal your payment information and use it to make unauthorized purchases or even open new credit lines in your business's name.
Phishing attacks: Clicking on a phishing email disguised as a utility bill can lead to cybercriminals stealing your business's sensitive data. These emails often claim to prevent service interruptions or offer fake refunds to lure you into clicking malicious links.
Fake government programs: Some scammers pose as representatives of government assistance programs, claiming they can help lower your utility bills. In reality, they're after your personal and business details for fraudulent use.
Malware infections: If you click on a link in a scam email, you could inadvertently install malware on your computer, compromising your business network and exposing your financial data.
Unauthorized facility access: Fraudsters sometimes pretend to be utility workers to gain physical access to your business premises.

How to Verify a Utility Bill Before Paying

To protect your business from utility bill scams, do not pay it until you have followed these steps:

1. Check Your Account Directly

Log in to your utility provider's official website or call their customer service using a number from their official site—not the one on the suspicious bill. Confirm whether you have an outstanding payment.

2. Compare the Bill with Past Payments

Look at previous bills and check for discrepancies. Does the due date align with your usual billing cycle? Is the amount unusually high or low? Any inconsistencies should raise concerns.

3. Verify the Contact Information

If you receive a bill from a new email address or phone number, verify it against previous communications from your actual provider. Scammers often spoof emails or phone numbers, but minor differences can expose the fraud.

4. Look for Official Payment Methods

Legitimate utility companies accept standard payment methods such as credit cards, direct bank transfers, or checks. If someone insists on cash, gift cards, or cryptocurrency, it's a scam.

5. Hang Up and Call the Utility Company Directly

If you receive a suspicious call, hang up and dial the official number listed on your bill or the company's website. Scammers often provide fake call-back numbers, so it's best to contact the company directly yourself.

6. Never Send Payments Through Untraceable Methods

Utility providers will never request payments via wire transfers, reloadable gift cards, or cryptocurrency. If someone insists on these methods, it's a clear sign of fraud.

Protect Your Business from Scams

If you've been targeted by a utility bill scam, report it to your utility company and the appropriate authorities to prevent others from falling victim.

If you have already made a payment, contact your bank or credit card provider immediately to see if the transaction can be reversed.

To protect your business from utility scams and other cyber threats, consider using Bitdefender Ultimate Small Business Security. It offers protection against phishing, fraud attempts, and online scams, keeping your financial and business data secure. Stay ahead of cybercriminals and safeguard your company today.

Check out our plans for small businesses.

FAQs

How can I tell if my utility bill is a scam?

Scammers often use urgent threats, fake invoices, and unusual payment requests like gift cards or wire transfers. Always verify the bill by checking your account directly on the utility provider's official website.

What should I do if I receive a suspicious utility bill?

Do not pay until you confirm its legitimacy. Contact your utility company using a verified phone number, report the scam, and warn employees. If you've already paid, reach out to your bank immediately.

How can I protect my business from utility bill scams?

Train your employees to spot red flags, always verify invoices, and use security tools like Bitdefender Ultimate Small Business Security to guard against phishing and fraud attempts.