Beware of Scams That Exploit Disaster Victims

In times of disaster, when individuals and communities are most vulnerable, fraudsters often seize the opportunity to prey on victims. These corrupt individuals exploit the desperation, perpetrating various scams that can further victimize those already hurting. Read on to learn how some common scams target disaster victims, like price gouging and deceptive insurance practices. Additionally, discover ways to verify the validity of companies before signing any agreements and provide guidance on reporting scams to the authorities.

Price Gouging

Price gouging is a despicable practice where unscrupulous merchants excessively inflate the prices of essential goods and services during or immediately after a disaster. Victims, already in dire need of supplies, are forced to pay exorbitant prices for necessities like food, water, shelter, and fuel. It is crucial to be cautious and aware of the prevailing market prices to avoid falling prey to such scams. Researching and comparing prices from different sources can help identify and prevent price gouging.

Contractor Fraud

Following a disaster, victims often turn to their insurance companies to file claims and seek compensation for damages. However, scammers may approach victims, offering to handle the insurance claim process on their behalf. They convince victims to sign documents that effectively transfer the right to deal with the insurance company to the scammer. The transfer of responsibility of communication allows the fraudster to manipulate the claim, possibly leading to further financial loss for the victim.

Imposter Fraud

We are all aware of the imposter fraud that targets us through the mail, phone, and email. Subsequently, after a disaster, imposter fraud can take on many forms. Scammers often pose as government officials (like FEMA agents), contractors, water quality testers, charity representatives, or insurance representatives. Whatever the persona they choose, their purposes are nefarious. Their success will undoubtedly mean additional woes for an already hurting individual.

Protect Yourself

It is important to note that the danger is not over once a disaster has passed. Unfortunately, some people want to take advantage of these situations. Knowing the pitfalls before the disaster strikes is the best protection from these scammers.

Tips to Avoid Various Types of Fraud After Devastation

Price Gouging

• Plan by having the necessary supplies on hand. For example, water, non-electric can openers, flashlights, batteries, etc.

Contractor Fraud

• Know and understand your insurance policy ahead of any catastrophe.
• Have your insurance representative assess damages before speaking with a contractor.
• Deal with your insurance company directly. Do not allow a third party to “expedite” the process.
• Get at least three itemized, written estimates from different contractors for the cost of repairs.
• Research companies before agreeing to hire them.
• Find out if a contractor is properly licensed and insured to do the work they provide.
• Thoroughly read and understand any contract before signing it.
• Never pay the total amount for a job upfront. Always wait until the job is finished and you are satisfied with the work before paying in full and signing a certificate of completion.
• Require all liens from any contractor or subcontractor to be released before you make the final payment.

Imposter Fraud

• Remember that no governmental agent will call you to ask for personal information.
• Applications for FEMA relief programs are free. Those are accessed by calling 800-621-FEMA or at DisasterAssistance.gov.
• If you need help filling out an application, make sure your assistance comes from a trusted individual.
• Always ask for identification from individuals who tell you they are from the government, your insurance company, or a charity. If they want your money or information, get confirmation on who they are.
• Be wary of any unsolicited people who approach you to help with debris removal, water safety or testing, or anything else that may cause you to part with large amounts of money or personal information.

Protect Your Neighbors

It is vital in our communities to help one another in times of need, especially after a catastrophic event. One way to serve your neighbors is to report any possible fraud you witness or suspect. Notifying the authorities and your neighbors can save someone else from needlessly becoming a victim. Below is a list of resources to research and verify businesses or report incidents.

• Verify if a business is licensed, insured, or has any complaints by going to My Florida License and the Better Business Bureau.
• Price gouging on essential items can be reported to the FL Attorney General’s price gouging hotline at 866-9NO-SCAM.
• Floridians can report a scam via the No Scam App , by visiting My Florida Legal, or Fraud Free Florida.
• Validate the integrity of a charity through the following websites: Guide Star, Charity Watchdog, or Charity Navigator.
• FEMA’s fraud hotline 866-720-5721.
• Report fraud to the Federal Trade Commission.
• Also, contact your local authorities if you have become a victim of fraud.