With colder months right around the corner, energy bills are already sky high. Hundreds of thousands of residential customers are falling prey to misleading scams that offer profound discounts on their electricity bills. Siobhan Blagbrough, financial crime manager at Ocean Finance, speaks out on the growing risk of criminals duping people out of cash. These scams typically employ plug-in devices, magnetic meters, or misnamed “voltage regulators.” These products typically claim to reduce energy bills by 30% or more. They bring in customers with the alluring promise of low costs.
These devices, which are widely available online for under £10, are marketed as ways to control electric supply effectively. The truth is that these scams don’t just defraud the buyer, they open them up to even greater criminal enterprise.
The Nature of the Scam
Blagbrough details how these scams pull families in with polished marketing tactics, complete with Trustpilot reviews and expert endorsements that are completely bogus. Yet, contrary to their enticing promises, these plug-in gadgets actually don’t save consumers any money or they enjoy safety risks to consumers.
“These scams usually involve plug-in devices, magnetic meters, or ‘voltage regulators’ that claim to cut household bills by 30% or more. The marketing is slick, often coming with fake Trustpilot reviews or phoney ‘expert endorsements’, but the devices either do nothing or can actually be unsafe.” – Siobhan Blagbrough.
Scammers are using new tricks to find new victims. Social media and cold calling are their two biggest tools for selling these predatory products. They could even pretend to be staff from the energy regulator Ofgem. They will try to convince you that they need to verify your information to receive a federal stimulus payment or an energy bill rebate.
The Warning Signs
With winter right around the corner and energy prices hitting record highs, Blagbrough encourages Americans to stay on high alert for these types of scams. She is adamant that a device that could save households hundreds of pounds on energy bills should be free to everyone. It would further gain credibility from endorsements from a diverse array of consumer organizations respected by consumers and retailers alike.
“If a device really could cut energy bills by hundreds of pounds, it would be sold by major retailers and recommended by trusted consumer groups. The fact that it’s being flogged on social media or through cold calls is the red flag.” – Siobhan Blagbrough.
She observes that nearly duplicative devices tend to resurface shortly after the originals are marked as fraudulent. This trend is symptomatic of a longstanding, difficult market reality.
Safe Alternatives
If you’re serious about increasing your home’s energy efficiency, steer clear of these scammy gadgets. When it comes time for deployment, Blagbrough would advise governments to use proven methods. You could add more insulation, retrofit your boilers, or make a downpayment on smart thermostats. These strategies save energy without exposing you to fraudulent or nonconforming products.
“If you want to make your home more efficient, stick to proven measures like insulation, boiler tweaks, or smart thermostats.” – Siobhan Blagbrough.