Meter-cheater fraud rips off electricity customers
24 November 2010
A new fraud which targets the users of pre-pay electricity meters could affect over three million customers, the energy industry has warned.
Organised criminal groups behind the scam are selling illegal electricity credits with phoney top-up keys. Pre-payment keys allow money-conscious customers to top up their meter with credit in advance. The fake keys trick the meter into thinking it has been topped up and are being passed off either as genuine special offers, by criminals dressed in branded uniforms and driving vehicles with authentic-looking company livery, or as a way to squeeze some 'free' electricity out of the supplier to people who are aware it’s a scam and believe the energy company is the victim rather than them.
But the energy companies can detect the fraud which means that the customer will end up paying twice - once to the criminal and again to their energy company. So far electricity companies have reported over 114,000 cases of the fraud and there are fears that as many as three million pre-payment meter customers could be vulnerable.
The police, SOCA, Consumer Focus and Crimestoppers have now teamed up with Energy UK and the energy companies to urge customers to steer clear of the criminals involved in the scam, to always buy their electricity top-up through the proper outlets - including PayPoint, Payzone and the Post Office - and to report any attempted fraud to their supplier or anonymously to Crimestoppers.
SOCA Deputy Director Andy Baker said:
“Times are tough for many in the UK, so whether the motive is securing a genuine bargain or getting free electricity through deception, these offers will be tempting. When suppliers detect the fraud it becomes clear that nobody has benefited except the organised criminals who control it. Hard-pushed families and businesses can’t afford to lose out from this kind of swindle, so if an offer seems too good to be true, that’s exactly what it is.”
Audrey Gallacher, Head of Energy at Consumer Focus, said:
“It is very worrying that the number of people affected by this scam continues to rise. Consumers should beware of anyone selling electricity credit on their doorstep. Thousands of hard-pressed households have already found their hard-earned cash ending up lining the pockets of criminals, instead of paying for their energy. Any customer worried that they may have been affected should call their energy supplier or Consumer Direct to seek advice.”
Thousands of customers have been contacted to advise them the fraud may be taking place in their area and special warnings are being printed on receipts from official top-up outlets. More information is available at www.top-upsafe.com or by contacting electricity providers.
The advice to customers is:
• Only buy credit for your prepayment electricity meter from official outlets or you’ll end up paying twice
• If anyone offers you energy top-ups on the doorstep, they are trying to involve you in criminal activity
• Don’t be fooled. Energy companies can identify homes using electricity but not paying for it.
• Contact Crimestoppers on 0800 555 111 or visit their website if you have any information about this crime.
Customers with credit meters who pay online, by cheque or direct debit are unaffected by the fraud.
For more information on fraud visit our Threats pages.
The details of other organisations which provide advice are available on our Protecting Yourself and Protecting Your Business pages.