More and more business owners are reporting a rise in energy bill scams as fraudsters prey on concerns about the rising cost of living
Business owners are at increased risk of energy bill scams, a leading fraud expert warns today.
In the week new Government support is rolled out, Roy Shelton said fraudsters are using it as a moment to target companies on “an unprecedented scale”.
Mr Shelton, the CEO of Business Connectivity and Managed Services Partner, the Connectus Group, said: “More and more business owners are reporting a rise in energy bill scams as fraudsters prey on concerns about the rising cost of living. Cases are happening on an unprecedented scale.”
“The most common scam sees directors and senior managers receiving what appears like genuine contact from their current energy provider.
“This is happening via email, text message and phone calls where the criminals offer support with spiraling energy costs.
“Criminals behind these scams are part of gangs making millions of pounds a year through scams and fraudulent activity.
“Another common fraud has been an electricity disconnection scam targeting small businesses, especially those in hospitality. The scam consists of a call from a made-up energy supplier alerting the business owner that their gas and electricity will be immediately cut off unless the full bill is paid right there and then over the phone with a credit card.
“In this situation, hang up the phone and be sure not to disclose any personal information, especially not your credit card details. In fact, most energy suppliers don’t even accept credit card payments over the phone.
“Another common, and sometimes very convincing scam is the one consisting of frequent phone calls (up to 30 – 40 every day) as soon as you move your business to a new location.
“In this case, the caller will probably tell you that if you don’t agree to a contract over the phone, your energy supply will be cut off immediately.
“This is not true. When you move to a new property, the current energy supplier will continue to supply your business with gas and electricity. As soon as you move in, you will be ‘out of contract’, meaning that although you will be charged deemed rates (which are often overpriced), you are free to get a new energy deal with any supplier you wish.
“The most important thing to remember is to stay calm when being pressured to sign a speedy contract over the phone. Instead of agreeing to something you may regret later, it is recommended that you take a step back and compare business energy deals to find the one that is right for you, away from any pressing scammers.
Mr Shelton, whose business provides cyber security solutions to hundreds of UK companies, said there are a number of other things businesses and individuals should remember as they grapple with rising bills.
He said: “Providing you’re eligible, your business will automatically receive Government support for your bills – you won’t need to set up new direct debits to receive the money.
“Genuine and ethical energy providers won’t ask you to share personal data in an email or text message.
“Be mindful that scammers can create fake Ofgem websites, known as ‘spoofing’. If you receive a message you’re unsure about, contact the provider directly using the contact details from their official website to confirm the message is legitimate. The list of ongoing energy scams that target businesses just keeps on getting bigger. To avoid these, one of the best things to do is be aware of them and know how to respond to each situation.”