A Q&A Guide On How To Avoid Alternative Energy Scams
Illustration by Jasmin Hernandez
By Hillary Flores
Communities of color are becoming more vulnerable to the growing trend of alternative energy supplier scams, according to a new report.
The findings show that majority Black neighborhoods experience twice as many complaints per household compared to majority Latino neighborhoods, while white residential areas have three times fewer complaints than majority Black areas.
In other words, high-poverty areas experience higher complaint rates compared to the rest of the city.
Yet, the issue does not stop there.
The Illinois Attorney General’s office has brought to light that consumers have overpaid $870 million to these companies between June and May of 2019.
The scams often feed on the limited resources and lack of awareness among vulnerable communities, seeking affordable energy options.
As a result, this launches a domino effect on financial strains for low-income households, including utility shutoffs, damage to credit scores and having to choose between essentials such as food and heating services, according to The Chicago Reporter.
In response to the growing trend and in hopes to continue empowering communities to avoid falling victim to these frauds, Cicero Independiente spoke with consumer protection expert Pierre Droira, vice president of business engagement & ad programs at the Better Business Bureau.
Q: What are the top three common tactics used by scammers to target misinformed communities?
A: Email, in-person and phone calls are the most common ways that scammers reach out to residents.
Q: Who are the main targeted demographics for these utility scams?
A: Usually it’s the younger generation between the ages of 18 and 34 that fall for a lot of these scams. A lot of the time it’s because these communities do not have access to mainstream information.
Q: Could you amplify on how to detect these types of scams?
A: With emails, hover over the subject line and check that it's coming from an actual utility company. Also, look for misspellings in the email address. In-person, anytime you get a solicitation from somebody claiming to be a utility company, whether they're wearing a uniform or somebody knocking on your door presenting lower prices for utilities, be wary and consider that a red flag because the utility company will not approach you proactively.
If you get a random email or random text, unless you request the information outside of that, don't click on links. Don't click on the text links as well because of potential phishing scams.
If an individual requests any payment through a nontraditional method like a wire transfer or gift card, this is also something to be aware of.
Q: Is there any way to obtain our money back if we fall victim to an alternative energy company scam?
A: If you use a credit card, there are protections with credit cards. So at least if you contact your credit card company, they can dispute it and you can let them know that it's a scam outside of that to recover your funds.
Unfortunately, sometimes, if it’s a transaction in cash, gift card, or Zelle, you are unprotected.
Q: How could we report these frauds?
A: You could start by reporting it to the Better Business Bureau (BBB) Scam Tracker. Notify us so we can let the public know. We have media partners we can share these stories with, and we'd like to take a record of this information to share it with the public.
If you were scammed or believe you were attempted to be scammed, whether you lost money or not, it is a good idea to report it to us.
You can also report to your local municipality, such as your local police, and let them know.
Q: Any additional tips to prevent utility scams?
A: When dealing with alternative utility companies, check their ratings, reviews and complaint history on platforms like the BBB website (bbb.org).
If you get information from a solicitor or a company that is authentic, review that information and do not sign your information to anybody without reading what you’re signing up and what you’re agreeing to.
Always be vigilant in general and don't assume that anything is legit just because of what they're telling you.
Hillary Flores is a Venezuelan, bilingual multimedia reporter and the founder of La DePaulina. She is currently an A.M. Digital Streaming Producer for CBS Chicago.
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