This is especially true of utility companies, who expect you to start paying them money before you ever interact with them or sign any contract, to the point where they will try to destroy your credit score if you don't pay them.
In the US, any business that requests payment outside of credit card/debit card/ACH/checks is questionable.
It happens if you have a history of not being a previous customer with them. I had a notice of good payment history from my previous electric company from another state and the company in the new state still required a deposit.