BBB offers tips to avoid AI-powered utility scams - Chattanooga Times Free Press

We recently shared general tips about the growing use of artificial intelligence to make fraud attempts look and sound more convincing. This week, we're taking a closer look at one scam that affects individuals and businesses across every community: utility company impostors.

While utility scams have been around for years, AI is making these schemes more believable than ever. From cloned voices and realistic text messages to fake customer service representatives and spoofed phone calls, scammers are using new technology to pressure consumers into sending money or revealing sensitive information.

Your Better Business Bureau urges residents to stay alert as criminals increasingly impersonate electric, gas, water, cable and internet providers. These scams are designed to create panic and urgency, convincing victims to act before they have time to verify the request.

In many cases, victims receive a phone call, text message or email claiming there is a problem with their utility account. The scammer may use high-pressure tactics and claim:

— Your power will be disconnected within the hour.

— Your payment failed, or your account is overdue.

— A technician is being dispatched, or your smart meter needs immediate verification.

— You're owed a refund or credit.

What makes these scams especially dangerous today is how realistic they can appear. AI tools allow criminals to clone customer service voices, create convincing emails and text messages, mimic company branding, spoof caller ID numbers and even build fake automated phone systems that sound legitimate.

Some victims report hearing what sounds like a real utility company phone tree before being transferred to a fake representative.

Utility scams often target new homeowners, renters, older adults and small businesses. Fraud attempts may increase after severe storms or widespread outages, when consumers are already distracted and concerned about restoring service. Business owners can be particularly vulnerable when scammers call during busy hours and demand immediate payment to avoid interruption.

Legitimate utility companies typically provide multiple notices before disconnecting service and follow established billing procedures. BBB recommends treating the following as red flags:

— A demand for immediate payment

— Requests for gift cards, cryptocurrency, wire transfers or payment apps

— Threats of immediate shutoff

— Pressure to stay on the phone and avoid verification

— Links asking you to "confirm" payment information

— Requests for remote access to your phone or computer

AI is also allowing scammers to personalize messages using publicly available information from social media, data breaches and online records. Some fraudulent messages may include your real address, partial account information, local phone numbers or company logos to appear more legitimate.

BBB offers these tips to help protect yourself and your family:

— Slow down and verify. If you receive a threatening call or message, do not panic. Hang up and contact your utility provider directly using the phone number on your bill or the company's official website. Do not rely on caller ID, which can be spoofed.

— Never pay using unusual methods. Legitimate utility companies do not request payment through gift cards, cryptocurrency or peer-to-peer payment apps. Be careful about providing payment through prepaid debit cards as well.

— Protect your accounts. Use strong passwords and enable multi-factor authentication on utility accounts whenever possible.

— Stay alert after storms or emergencies. Fraud attempts often increase when consumers are distracted by outages or property damage.

— Talk with vulnerable family members. Older adults are frequently targeted, so make sure they know common scam tactics and the importance of independently verifying suspicious requests.

— Research scams and report fraud. Consumers can learn about emerging scams and report suspicious activity through BBB Scam Tracker, bbb.org/scamtracker.

You can reach your BBB, which serves Southeast Tennessee and Northwest Georgia, at 423-266-6144 or tngabbb@chattanooga.bbb.org.

Michele Mason is president of the Better Business Bureau in Chattanooga.