Despite continual reminders that your local utilities do not use aggressive phone calling and demands for instant payment over the phone for alleged overdue bills, the Better Business Bureau and Consumers Energy are warning of escalating attempts to con the West Michigan Business Community out of hard earned cash.
The Better Business Bureau Serving Western Michigan and Consumers Energy are warning businesses to be cautious of that growing utility scam, wherein a person calls your business claiming to be from Consumers Energy. The caller contends that your business has an overdue bill and your utilities will be shut off if payment isn’t made immediately. Often the caller asks for payment via wire transfer or prepaid card.
Consumers Energy has seen an uptick in scam calls during the last two months, with customers paying more money to scammers in 2019 – more than $52,000 – than they did in 2018. Through mid-December, statistics show most of the scammed customers are in Kent County but followed closely by Allegan and Kalamazoo Counties. Consumers Energy has received information on 76 incidents where scammers were paid by customers in 2019. The Better Business Bureau has also received a number of reports regarding this scam.
Christopher Bush is Director of Corporate Security for Consumers Energy. He says, “Unfortunately, these scammers are very convincing and can quickly coerce customers into paying money,” and adds, “If you receive a scam call or are unsure if the call is legitimate, hang up and call Consumers Energy at 800-477-5050 and contact your local law enforcement agency.”
Bush says Consumers Energy will never threaten to shut off power immediately if payment is not made. The company’s collection process involves a series of letters which clearly state a disconnection date if payment is not made. The company will also not require payment in pre-paid credit cards or debit cards, a tactic often used by scammers.
Over at the Better Business Bureau Serving Western Michigan, President Phil Catlett says, “It is important for businesses to know what to watch for, and how to avoid falling victim to scams such as this.” He reminds everyone, “Scams like this not only cost businesses money, but they erode trust. This makes it harder to build the ethical marketplace we all desire.”
An employee at a Grandville auto repair shop recently reported one of those calls to the BBB Scamtracker. She, Wendy, says the caller claimed to be with Consumers Energy and claimed that employees were on the way to the address to shut off the power. The caller claimed the only way to prevent this was to pay the outstanding balance of $1,382.42 immediately, but Wendy says, “I knew we didn’t have a balance and knew this was a scam.” However, the threat concerned others at the business who were worried the power would be cut if payment wasn’t made. In the end Wendy refused to pay and no money was lost.
You are encouraged to learn more by visiting ConsumersEnergy.com/scams and at bbb.org.
