Increase in energy-related scams as cost-of-living crisis hits
Scammers take advantage of household bill uncertainty by posing as energy suppliers
Last updated 24th Jun 2022
Energy-related scams are increasing across households due to fraudsters exploiting soaring bills.
Scams mentioning major energy firms in the first quarter of this year were up 10% compared to the same period last year, figures from Action Fraud and reported by Which? show.
January alone saw a 27% year-on-year increase.
Due to many scam attempts being unreported, Which? Believed this figure could have been higher.
Fraudsters generally posed as energy suppliers inviting customers to claim a refund due to a miscalculation on their energy bill. This leads to reciepents revealing sensitive bank details.
Additionally, many small energy firms had collapsed creating an atmosphere of confusion around outstanding bills. Scammers took advantage of this by posing as debt collection firms.
Customers received phishing emails years after energy-supplier closed down
Former customers of Brilliant Energy have reported receiving sophisticated phishing emails, including their names and knowledge of their former supplier, more than two years after the company had been closed down.
Customers of defunct firms including Solarplicity, Future Energy and Northumbria Energy have been similarly affected.
Fraudsters are also taking advantage of various government grants set up to incentivise take-up of insulation, heat pumps and other products by impersonating legitimate schemes online, via cold calling and even on the doorstep.
Research from Citizens Advice suggests that around five million people may have been taken in by such scams, paying for services that never materialised.
Which? Money editor Jsays: "We advise all consumers to be wary of unsolicited emails, texts or letters, especially those not addressed to you by name, which might request sensitive information or ask you to complete a bank transfer."
"If in doubt, contact your energy supplier directly using the contact information on their website."
More on the cost-of-living crisis
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.