$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
power company disconnection threat scam
Scammers call or text pretending to be your electric utility, claiming your power will be shut off within hours unless you pay immediately via gift card or wire transfer.
“utility scam”
↑ 649%Key indicators
Usually targetsHomeowners
Often hitsReal estate professionals and homebuyers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers spoof the local utility company caller ID and claim the victim has an overdue balance requiring immediate payment
2
They create extreme urgency by threatening disconnection within the hour and may claim a technician is already en route
3
Victims are directed to purchase prepaid cards or wire money to an untraceable account
What to do first
Hang up and call your utility company directly using the number on your bill or their official website
Related terms
electric shutoff scamutility cutoff threatpower bill urgency scamUtility scamsPhoneSurgingHomeownersRentersOlder adultsReal estate professionals and homebuyersRetirees and seniorsImmigrants and visa holdersUnited StatesCanadaelectric shutoff scamutility cutoff threat
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Andrew, 42, a homeowners, encountered what appeared to be a legitimate utility scams situation while using Phone. Scammers spoof the local utility company caller ID and claim the victim has an overdue balance requiring immediate payment
Step 2
What happened next was calculated: They create extreme urgency by threatening disconnection within the hour and may claim a technician is already en route
Step 3
The pressure escalated quickly: Victims are directed to purchase prepaid cards or wire money to an untraceable account
The outcome
Andrew realized something was wrong when caller demands immediate payment within 30-60 minutes to avoid disconnection. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Hang up and call your utility company directly using the number on your bill or their official website Andrew's experience shows why caller demands immediate payment within 30-60 minutes to avoid disconnection and payment requested via prepaid debit card, gift card, or cryptocurrency are the clearest early warning signs.
How to identify it
- Caller demands immediate payment within 30-60 minutes to avoid disconnection
- Payment requested via prepaid debit card, gift card, or cryptocurrency
- Caller ID spoofed to display the real utility company phone number
- 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
- ✓Hang up and call your utility company directly using the number on your bill or their official website
- ✓Report the call to the FTC at ReportFraud.ftc.gov and your state attorney general
- ✓Know that legitimate utilities send multiple written notices before disconnection and never demand gift card payments
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.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
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 FTC reports utility impersonation as one of the top government impersonator scam categories, with losses exceeding 1 billion USD in impersonator scams overall in 2023
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.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Hang up and call your utility company directly using the number on your bill or their official website
- ✓Report the call to the FTC at ReportFraud.ftc.gov and your state attorney general
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 FTC reports utility impersonation as one of the top government impersonator scam categories, with losses exceeding 1 billion USD in impersonator scams overall in 2023
FTC Consumer Sentinel 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, Renters, Older adults
Geographic concentration
United States, Canada
Primary channel
Phone — 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 FTC reports utility impersonation as one of the top government impersonator scam categories, with losses exceeding 1 billion USD in impersonator scams overall in 2023
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about power company disconnection threat scam
How does the power company disconnection threat scam work?+
Scammers spoof the local utility company caller ID and claim the victim has an overdue balance requiring immediate payment They create extreme urgency by threatening disconnection within the hour and may claim a technician is already en route Victims are directed to purchase prepaid cards or wire money to an untraceable account
What are the warning signs of power company disconnection threat scam?+
Caller demands immediate payment within 30-60 minutes to avoid disconnection Payment requested via prepaid debit card, gift card, or cryptocurrency Caller ID spoofed to display the real utility company phone number
What should I do if I encounter power company disconnection threat scam?+
Hang up and call your utility company directly using the number on your bill or their official website Report the call to the FTC at ReportFraud.ftc.gov and your state attorney general Know that legitimate utilities send multiple written notices before disconnection and never demand gift card payments
Who is most at risk for power company disconnection threat scam?+
This scam primarily targets Homeowners, Renters, Older adults. It is most commonly reported in United States, Canada and typically appears on Phone.
Is power company disconnection threat scam getting worse?+
power company disconnection threat scam is currently surging — reports are increasing rapidly. It has been reported across US, CA. Last updated 2026-04-04.
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What to do first
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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.