Staying Alert for Scammers After Disaster Strikes

The first few weeks after a disaster strikes can be overwhelming as you try to pick up the pieces, support your neighbor, or donate from afar. No matter what camp you fall into, or what disaster has hit, scammers can prey on your misfortune or generosity. While there are a number of potential scams you could see, there are five that continue to arise year over year.

Phony Federal Assistance

If you need disaster assistance, there is help available through the federal government. But criminals also use this as an opportunity to steal your personal information and apply for federal assistance in your name with the intention of taking your money. If you encounter someone asking for money to fill out an application or promising a disaster grant in exchange for a cash deposit or advance payment, it’s a scam.

A true Federal Emergency Management Agency (FEMA) housing inspector will:

• Have your nine-digit registration number when they arrive. They won’t ask for it, and you shouldn’t give it out.
• Wear an official government badge. If you don’t see it, you can ask the inspector to show it to you.

An inspector will never:

• Charge you a fee for an inspection. There is never a need to give your bank account information.
• Climb on your roof or enter a crawl space.

If an inspector shows up or you receive a letter for assistance you didn’t apply for, call the FEMA Helpline at 800.621.3362.

Insurance and Aid Scams

When it comes time to file your insurance claim, make sure you are going straight to the source. Bad actors may try to impersonate your insurance company—either in person, over the phone, or online—with the goal of stealing your information. Before filing a claim, call your agent to ensure you are following proper procedures.

Utility Scams

Threats are a common tactic to watch out for, and it’s how utility scammers work. They threaten to turn off your service if you don’t pay immediately, claiming to be your electric, gas, internet, or water company. They will likely request the money through a wire transfer, gift card, or cryptocurrency. This is not how a utility company works.

If you get a call with this threat, hang up and call the utility company yourself. Do not call the number back. If you get the alert via text, delete it and report it as spam.

Contractor and Repair Scams

As you get ready to rebuild, you may also run into fraudulent contractors offering to make repairs. If they try to rush you into a decision, take a step back and do your research before moving forward. Before handing over any money, you should:

• Ensure the company is legitimate and backed by reliable references.
  • Remember that online reviews can be deceptive. If there is a burst of positive reviews in a short time or if a reviewer has only given one review, that could be a red flag.
  • If they claim to be supported by the government, that’s a bad sign. FEMA does not endorse any contractors or loan companies.
• Check that they are licensed and insured.
  • You can also see if there are any complaints against the company by reaching out to your local Home Builders Association.
• Get a written, detailed description of the services promised by the contractor.
  • Never sign a blank contract, and carefully read each page before signing.

When it comes time to settle the bill, don’t pay more than half of the cost upfront, and never sign away your federal assistance check. A legitimate contractor will never force you to pay with a wire transfer, gift card, payment app, cryptocurrency, or cash.

Charity Relief Scams

Giving back to communities in need, especially after a natural disaster, is a great thing to do, but you should always know where that money is going. Phony charities after a disaster are often circulated through social media. You may see people posting about ways to donate or directing you to crowdfunding sites which are not fully vetted to confirm their legitimacy. Scammers may also target your generosity through emails and text messages.

The best way to identify the legitimacy of these organizations is by:

1. Trusting an official source – The Better Business Bureau offers a resource to verify registered charities. Other charity-checkers recommended by the Federal Communications Commission include Charity Navigator, Charity Watch and Guidestar.
2. Verifying all phone numbers – Look at the charity’s official website to ensure the number you have matches the one they give you. If you are texting to donate, ensure that number is listed on their website.
3. Knowing your currency – If a charity wants you to donate through cash, gift cards or wiring money, that’s a red flag. The Federal Trade Commission recommends you pay via check or credit card for safer, trackable donations.
4. Requesting a receipt – If your donation is legitimate, they will provide a receipt for tax purposes. If it is tax deductible, the non-profit will be registered through the IRS. If a company guarantees a sweepstakes win in exchange for a donation, it’s not only a scam, but illegal.

There is an entire center dedicated to disaster fraud, so know you are not alone.

1. Report the scam to the Department of Justice.
2. Put a fraud alert on your credit report with Equifax, Experian and TransUnion.
3. Call your bank directly and have them freeze your accounts. Get new account numbers, new debit/credit cards, and monitor your account statements for fraudulent charges.
4. Update all your online usernames and passwords.