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PSE&G’s Proactive Stance Against Utility Scams: A Blueprint for Investor Resilience

Cyrus ColeTuesday, Apr 22, 2025 9:47 am ET
9min read

The 2025 National Consumer Protection Week has thrust utility scams into the spotlight, with Public Service Electric & Gas Co. (PSE&G) and PSEG Long Island issuing urgent warnings about sophisticated fraud tactics. While these advisories aim to shield customers, they also underscore a critical truth for investors: companies that prioritize consumer trust and operational resilience are better positioned to weather economic and reputational storms.

The Scam Landscape: A Growing Threat to Utilities and Consumers

PSE&G’s warnings reveal a troubling trend: scammers are increasingly targeting utility customers with urgency-driven schemes. The most common tactics—threats of immediate disconnection, demands for unorthodox payments (gift cards, cryptocurrency), and spoofed caller IDs—have cost customers thousands. For example, a pizzeria owner lost nearly $2,000 to a scammer demanding payment via Money Express, while an auto shop owner was defrauded over $1,700 through cash transfers.

These incidents highlight a paradox: utilities like PSE&G are both targets and victims of fraud. Their reputations are leveraged to exploit customers, but their proactive measures to combat scams can also insulate them from long-term damage.

PSE&G’s Response: A Model of Proactive Governance

PSE&G’s approach to consumer protection is not merely reactive—it’s a strategic pillar of their operational framework. Key actions include:
- Collaboration with UUAS: As part of the Utilities United Against Scams coalition, PSE&G has helped block over 14,830 fraudulent toll-free numbers since 2021. This collective effort reduces reputational risk and customer attrition.
- Transparent Communication: By emphasizing that PSE&G never demands urgent payments via non-traditional methods, the company reinforces its credibility. Their official scam alert page (
pseg.com/ScamAlert) serves as a real-time tool for customer education.
- Regulatory Compliance: Their adherence to strict payment policies (e.g., rejecting gift cards) aligns with state and federal regulations, minimizing legal exposure.

The Investment Case: Stability in a Volatile Market

For investors, PSE&G’s focus on consumer protection is a signal of operational and financial resilience. Regulated utilities like PSE&G typically offer steady cash flows, and their focus on safeguarding customer trust strengthens their brand equity.

While PSE&G’s stock may not offer explosive growth, its dividend yield—consistently above 4% since 2020—reflects a commitment to shareholder returns. This stability contrasts with the volatility of tech-driven sectors, making it an anchor in diversified portfolios.

Moreover, PSE&G’s efforts to combat scams align with broader ESG (Environmental, Social, Governance) trends. Investors increasingly prioritize companies that invest in community safety and regulatory compliance, which PSE&G’s actions exemplify.

The Competitive Advantage: Data-Backed Resilience

PSE&G’s proactive stance also sets it apart from peers. Consider the financial performance of major utilities:

EIX, SO, DUK Total Revenue

While Duke Energy (DUK) and Southern Company (SO) have seen revenue fluctuations tied to energy markets, PSE&G’s revenue growth, bolstered by regulated rate structures and infrastructure investments, has remained consistent. This stability is amplified by its consumer protection initiatives, which reduce operational risks like lawsuits or regulatory penalties.

Conclusion: Why PSE&G’s Scam-Fighting Efforts Signal Long-Term Value

PSE&G’s warnings and actions during National Consumer Protection Week 2025 are not just about fraud prevention—they’re about building investor confidence. By mitigating risks to its customer base, the company safeguards its revenue streams and reputation.

Key data points reinforce this narrative:
- Over $2.5 million lost by customers in documented scams (per 2025 advisories), highlighting the urgency of PSE&G’s education campaigns.
- 14,830 blocked fraudulent numbers since 2021, demonstrating UUAS’s effectiveness in reducing fraud vectors.
- 4.2% average dividend yield since 2020, underscoring financial discipline.

In a world where scams evolve faster than regulations, PSE&G’s blend of proactive governance, regulatory alignment, and customer-centricity positions it as a reliable utility stock. For investors seeking stability in an uncertain market, PSE&G’s resilience is not just a defensive play—it’s a growth opportunity rooted in trust.

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