Energy Saving Scams: Criminals Steal More Than Your Money

Did you know that energy-related scams in the UK have surged in recent years, costing consumers millions? According to Energy Saving Trust, fraudsters exploit financial anxieties. For instance, National Trading Standards reported that fraudulent calls offering energy-saving products increased by 84% between August and September 2023. Moreover, 24% of adults surveyed said that losing just £100 to a scam would push them into a financial crisis. So, to help spread awareness, this blog dives into how these scams operate, real-life examples, and how you can protect yourself with the help of Phonely’s CallGuard technology.

What are energy saving scams?

Energy saving scams use fraudulent tactics to deceive victims into sharing sensitive information or making payments. In addition, these scams often disguise themselves as genuine offers to reduce energy costs or provide government grants. Key types include:

• Energy rebate scams: Scammers often claim to offer government rebates or discounts, but they ask for sensitive information such as bank details or National Insurance numbers.
• Meter key scams: Fraudsters frequently sell cloned meter keys preloaded with credit to unsuspecting individuals using prepayment meters.
• Fake texts: Messages promising energy bill assistance are commonly sent to unsuspecting victims. Furthermore, these messages typically contain smishing links designed to steal personal information.
• Phone calls: Scammers regularly impersonate energy advisors, convincingly pushing bogus schemes for insulation or boiler upgrades.
• Energy provider impersonation: Scammers may pose as Ofgem or energy providers, offering fake rebates or cheaper tariffs. However, these offers require victims to provide personal details, leaving them vulnerable to fraud.
• Energy support scheme scams: Fraudsters falsely claim eligibility for expired schemes like the £400 government rebate. In reality, these schemes are no longer available.
• Energy efficiency improvement frauds: Scammers often misuse publicly available data, such as EPC records, to offer fake insulation or boiler upgrades. These are frequently poorly executed or even nonexistent.
• Energy improvement grants: Fraudsters sometimes offer to apply for grants, yet they either charge victims or steal financial details under false pretences.

These schemes prey on vulnerability, often targeting elderly homeowners or those struggling with high energy bills.

Real-life examples reported to Phonely

Reports from Phonely’s Who Called Me platform reveal just how pervasive these scams are. Here are some chilling examples:

1. 01452 496 407: “Knew my first name and asked about energy reduction. When questioned, they hung up.”
2. 0203 912 1350: “Posing as my current electric company and saying that prices are increasing due to change in government legislation.”
3. 0161 531 5442: “An ‘energy advisor’. Why do they keep calling? My number’s on TPS! Clearly, they don’t care about the rules.”
4. 01242 472 644: “Apparently from a company called The Energy Company! Apparently, my contract was shortly coming to an end. It’s not! She would not listen and talked over me and I was forced to hang up!”
5. 01339 264 001: “Received the phone call, but, when asked how they got my number, they went down the route of it being on the government’s energy department’s records. Even if it were on there, I’m registered with the TPS, so they shouldn’t have called me in the first place.”
6. 01236 268 423: “Scammers claiming to be ‘Your Energy Advice Centre’ and when I questioned if “Your Energy Advice Centre’ is the name of their company they then changed tack and said they are offering government incentives. So I then questioned if she was working for the government and she hung up.”
7. 01792 72 2689: “Said I was eligible for the new government grant to help insulate, I told him I was not interested as I had full cavity wall and loft insulation; he was persistent.”

As you can see from this selection, scammers use a variety of different types of number, and it’s likely that they spoof their numbers too on occasion. In addition, they are not deterred if you are on the TPS.

Why are traditional blockers failing

Traditional call blockers often fail to keep pace with scammers because they are updated monthly, often via 3rd party lists. The reason this is an issue is due to the benefits of virtual numbers. Criminals have access to as many numbers as they please and can change them quickly. Consequently, numbers that are blocked are no longer in use, leaving customers still open to scams.

Phonely’s CallGuard addresses these issues with their unique auto call blocker. It blocks scam numbers within an hour of being reported. For instance, if a scam number is reported at 10:00 AM, via their Who Called Me platform, it’s prevented from reaching Phonely customers by 11:00 AM. This rapid response keeps users safe from evolving threats.

How energy scams take more than your money

Energy scams can leave victims financially, emotionally, and physically strained. Here are some real-world consequences:

1. Unfinished or faulty upgrades: Victims of insulation or boiler scams often find their homes in worse condition. For example, a victim in Birmingham paid thousands towards “upgraded” insulation, only to discover it was incorrectly installed, causing damp and structural issues. Another victim shared that their boiler upgrade was never completed, leaving them without heating during winter.
2. Mental health toll: The stress of being scammed can lead to anxiety and depression. One victim described losing sleep and feeling isolated after falling for a rebate scam. Many victims feel embarrassed or blame themselves, impacting their confidence and mental well-being.
3. Loss of trust: Scams erode trust in genuine services and make individuals wary of legitimate offers, limiting access to real opportunities.

Protecting yourself with tools like Phonely’s CallGuard can mitigate these risks and provide peace of mind.

What to do if you’ve been scammed

If you’ve fallen victim to an energy saving scam, it’s crucial to act quickly:

1. Contact your bank immediately: If you’ve shared financial details, inform your bank to freeze accounts and prevent further losses. For instance, one victim reported that their prompt call to the bank prevented an unauthorised withdrawal of £2,000.
2. Report the scam: File a report with Action Fraud, the UK’s national fraud reporting centre. They offer guidance and assistance in recovering lost funds.
3. Alert service providers: Notify your energy provider to ensure your account remains secure and avoid unauthorised changes to your energy plan.
4. Secure your devices: Run antivirus software on your phone or computer to check for malware. Cybercriminals often use phishing links to install harmful software.
5. Share your experience: Warn others by reporting the scam on platforms like Phonely’s Who Called Me. One user’s report led to multiple scam numbers being blocked, protecting countless others.

Taking these steps not only minimises the impact of the scam but also empowers others to avoid falling victim.

FAQs about energy saving scams