If and when it detects an imbalance, it will automatically trip and stop any electricity in the outlet and any downstream outlets, thus preventing any hazards. GFCI outlets protect from electrical shocks and can protect appliances from damage caused by electrical faults (like short circuits or ground faults).Ī GFCI outlet has an in-built mechanism that monitors the current going in through the hot wire and out through the neutral wire. Bad GFCI Outlet FAQs How Do GFCI Outlets Work?