Spotting and Avoiding Natural Disaster Scams

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Spotting Natural Disaster Scams and How to Avoid Them

Natural disasters, such as hurricanes, wildfires, and floods, bring out the best in communities but unfortunately also attract scammers looking to exploit people’s vulnerability. In the wake of disasters like Hurricane Helene or other significant events, scammers employ tactics to defraud individuals and businesses. From price gouging to fake charity appeals, it’s critical to recognize these scams and take precautions to protect yourself.

Common Natural Disaster Scams

Here are the most common types of scams that surface during and after natural disasters:

Price Gouging: During disasters, some businesses inflate prices on essential goods like water, gas, and building materials. Though illegal in many regions, this practice persists. Scammers take advantage of scarcity and urgency, leaving victims with overpriced goods and limited options.

Red Flag: If you notice drastic price increases on basic necessities, it’s a potential sign of price gouging. Research standard prices or compare prices from different stores.

Fake Charities: Fraudulent charities often emerge after disasters, claiming to raise funds for relief efforts. Scammers exploit the desire to help others by creating fake websites, using real charity logos, or setting up crowdfunding pages to steal donations.

Red Flag: If a charity requests payment in cash, gift cards, or cryptocurrency, it’s likely a scam. Always verify charity legitimacy through trusted sources like Charity Navigator or the Better Business Bureau.

Home Repair Fraud: Fraudulent contractors appear after natural disasters offering to repair homes damaged by storms, floods, or other events. These scammers often request upfront payments and disappear without completing the work.

Red Flag: Avoid contractors who solicit work door-to-door, especially if they demand large sums upfront or do not provide written contracts.

FEMA or Government Impersonation: Scammers pose as government officials from agencies like FEMA, offering disaster assistance in exchange for personal information or fees. These scams are designed to steal identity or personal financial data.

Red Flag: Government agencies never charge for assistance or ask for sensitive information like Social Security numbers over the phone or online.

Phishing Emails and Texts: Scammers send out fake messages pretending to offer aid, claiming to be from reputable agencies. These messages may contain links leading to malware or request donations via unsafe payment methods.

Red Flag: Look for spelling errors, unusual email addresses, or unsolicited messages asking for donations or personal information.

How to Avoid Natural Disaster Scams

Never, Ever Pay Cash

If you have to pay for a repair or other item associated with a natural disaster of more than a hundred dollars pay with a credit card (NOT DEBIT CARD) or by check – check is usually better since proof of identity is required to cash it, and also always mark on the back of the check ‘FOR DEPOSIT ONLY’ so they have to deposit it in their bank account. This tactic will give you a way to trace and potentially recover your money in the event of a scam.

Hire a Licensed Independent Insurance Appraiser

Do not accept an offer from your insurance company without an independent appraiser. This is also the best way to get a settlement before doing the repairs.

Verify Charities

Before donating, research the charity through reputable websites or government databases. Legitimate charities will be transparent about where the funds are going and will not pressure you into donating quickly.

Use Trusted Retailers

When purchasing emergency supplies or repairs, stick to known and trusted vendors. If prices seem excessively high, check local price gouging laws and report suspicious activity.

Get Written Estimates for Repairs

For home repairs, always get multiple estimates and written contracts. Avoid paying the total cost upfront and ensure the contractor has proper licenses and insurance.

Beware of Unsolicited Offers

If someone contacts you claiming to represent FEMA or other government relief agencies, be cautious. Official agencies will typically communicate through official channels, and they will never request personal or financial information upfront.

Don’t Be in a Hurry

The simple fact is that if you can wait for a repair or service – wait! Prices will go back down in the months following the disaster. The highest prices will be in a couple of months following the storm or event. If it is a non-emergency, just wait. This is also the best way to maximize what your insurance will give you.

Avoid Clicking Unverified Links

After a disaster, you may receive emails, texts, or social media messages requesting donations or offering services. Never click on links or download attachments from unknown sources. Instead, visit official websites directly.

What to Do If You’ve Been Scammed

If you believe you’ve fallen victim to a natural disaster scam, take these steps immediately:

Report to Authorities: Contact local law enforcement or consumer protection agencies, such as the Federal Trade Commission (FTC) in the U.S., to report the scam. In the UK, Action Fraud is the go-to resource.

File a Complaint with FEMA or Appropriate Agency: If you were scammed by someone posing as a government official, report the fraud directly to FEMA or the equivalent agency in your country.

In the United States file a complaint with the U.S. National Disaster Fraud Center: https://www.justice.gov/disaster-fraud

Notify Your Bank: If you’ve shared financial information or made payments, contact your bank or credit card company to halt transactions and secure your accounts. They can also help you track any unauthorized transactions.

Monitor Your Credit: Scammers often use stolen personal information for identity theft. Monitor your credit report for any unusual activity or unauthorized accounts.

Spread Awareness: Warn others about the scam by sharing your experience on social media, community groups, or scam-tracking websites like Scamwatch or the BBB’s Scam Tracker.

How To Report

1. Report all scams to your local police, especially if the scam was someone you met.
2. In the United States file a complaint with the U.S. National Disaster Fraud Center: https://www.justice.gov/disaster-fraud
3. Report to your national police, such as the FBI and FTC all scams. Visit reporting.AgainstScams.org for more details.

Conclusion

In conclusion, while natural disasters bring challenges, staying vigilant about fraud during these times is crucial. By recognizing common scams, being cautious in donations and services, and taking quick action if scammed, individuals can better protect themselves and their communities during vulnerable times.