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People living in a Leybourne estate got a fright when they were woken in the middle of the night to find men with torches creeping around their gardens and drives.
Now the parish council has complained to South East Water, after the "prowlers" turned out to be contractors checking for leaks.
Police were called to Woodlea and Redbank on two separate occasions last week, when homeowners mistaking the workers for burglars reported the suspicious activity.
The sightings came a day after a house was broken into in nearby Willowmead.
Jenny Brown, 55, dialled 999 when she was woken by her dogs barking at 2.30am on Wednesday to find three shadowy figures wearing high visibility jackets on the pavement outside her home.
She said: “Without the street lights on it was difficult to see what they were doing. It was very suspicious after the other burglary.
"I thought they might have been casing other houses. I shouted to them and they told me they were looking for leaks but I didn’t believe them - I’ve never heard of anything like it before.
“I think residents should have been informed and the men should have had clear ID. It could have been very frightening for an elderly person to see.”
As well as phoning the police, Mrs Brown also called South East Water to verify their stories.
She was told the company had no works planned and they were bogus callers. The company has since confirmed the men were its contractors.
Police were also called out to Redbank the following morning, at 1.30am.
Leybourne Parish Council this week complained to the utilities company, saying it should have informed residents and police in advance of the works, which was being carried out by Hydrosave to identify leaks from water meters.
Leak detection manager at South East Water, Gary Ford, said: “Sometimes in a highly populated area this work has to be done overnight when water use is at its lowest and we can hear what is going on underground with our specialist equipment.
“That is what happened in this case. Several leaks were found during last week’s operation and we will be back over the next fortnight to carry out the repairs.”
Around 20 people contacted the parish council about their concerns.
Chairman Bob Ulph said: “I contacted South East Water to say it is not acceptable. There should have been leaflets given to residents beforehand and neighbourhood police should have been told.
“We are always urging residents to be wary of suspicious activity.
“People woke up to see people with torches and by the time they have got up they have gone - they think they have disturbed a burglar.
"It is very disconcerting to think your house may have been cased.”