$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
energy audit scam
Fraudulent contractors offer free or low-cost home energy audits, then pressure homeowners into overpriced and unnecessary repairs or equipment installations.
“utility scam”
↑ 649%Key indicators
Usually targetsHomeowners
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
Scammers go door-to-door offering free energy audits, sometimes falsely claiming affiliation with the utility or government
2
After a brief inspection, they present alarming findings about insulation, windows, or HVAC systems that supposedly need immediate and costly replacement
3
Homeowners who agree pay inflated prices for substandard work or materials, and the contractor may disappear after collecting the deposit
What to do first
Only schedule energy audits through your utility company or certified programs like ENERGY STAR Home Advisor
Related terms
fake energy assessmenthome efficiency scamenergy inspection fraudUtility scamsDoor-to-doorSurgingHomeownersOlder adultsFreelancers and contractorsReal estate professionals and homebuyersRetirees and seniorsUnited StatesCanadaUnited Kingdomfake energy assessmenthome efficiency scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Timothy, 42, a homeowners, encountered what appeared to be a legitimate utility scams situation while using Door-to-door. Scammers go door-to-door offering free energy audits, sometimes falsely claiming affiliation with the utility or government
Step 2
What happened next was calculated: After a brief inspection, they present alarming findings about insulation, windows, or HVAC systems that supposedly need immediate and costly replacement
Step 3
The pressure escalated quickly: Homeowners who agree pay inflated prices for substandard work or materials, and the contractor may disappear after collecting the deposit
The outcome
Timothy realized something was wrong when unsolicited offer for a free energy audit from an unknown company. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Only schedule energy audits through your utility company or certified programs like ENERGY STAR Home Advisor Timothy's experience shows why unsolicited offer for a free energy audit from an unknown company and auditor identifies urgent and expensive problems that require immediate repair are the clearest early warning signs.
How to identify it
- Unsolicited offer for a free energy audit from an unknown company
- Auditor identifies urgent and expensive problems that require immediate repair
- Contractor demands a large deposit before starting any work
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Only schedule energy audits through your utility company or certified programs like ENERGY STAR Home Advisor
- ✓Get multiple written estimates from licensed contractors before agreeing to any work
- ✓Verify contractor licenses through your state licensing board
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The BBB consistently warns about home improvement scams, including fake energy audits, which account for significant consumer losses especially after severe weather events
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Only schedule energy audits through your utility company or certified programs like ENERGY STAR Home Advisor
- ✓Get multiple written estimates from licensed contractors before agreeing to any work
- ✓Verify contractor licenses through your state licensing board
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The BBB consistently warns about home improvement scams, including fake energy audits, which account for significant consumer losses especially after severe weather events
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homeowners, Older adults
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Door-to-door — Utility scams
Why this group is vulnerable
Homeowners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The BBB consistently warns about home improvement scams, including fake energy audits, which account for significant consumer losses especially after severe weather events
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about energy audit scam
How does the energy audit scam work?+
Scammers go door-to-door offering free energy audits, sometimes falsely claiming affiliation with the utility or government After a brief inspection, they present alarming findings about insulation, windows, or HVAC systems that supposedly need immediate and costly replacement Homeowners who agree pay inflated prices for substandard work or materials, and the contractor may disappear after collecting the deposit
What are the warning signs of energy audit scam?+
Unsolicited offer for a free energy audit from an unknown company Auditor identifies urgent and expensive problems that require immediate repair Contractor demands a large deposit before starting any work
What should I do if I encounter energy audit scam?+
Only schedule energy audits through your utility company or certified programs like ENERGY STAR Home Advisor Get multiple written estimates from licensed contractors before agreeing to any work Verify contractor licenses through your state licensing board
Who is most at risk for energy audit scam?+
This scam primarily targets Homeowners, Older adults. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Door-to-door.
Is energy audit scam getting worse?+
energy audit scam is currently surging — reports are increasing rapidly. It has been reported across US, CA, UK. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.