Disaster-Related Cons and Scams

Unfortunately, natural disasters often bring out con artists and scammers hoping to profit off of people's misfortune.  Falling for cons and scams can create a financial disaster following the natural disaster.

Here are some common cons and scams to watch out for following a natural disaster:

Home repair scams

Following damaging storms (high winds, hail and tornadoes), hurricanes and even earthquakes, people impersonating home repair businesses and roofing companies will visit affected neighborhoods and offer to repair damage. Red flags that you are dealing with a scammer and not a legitimate business include:

• One-day-only discounts
• Aggressive sales pitches
• Requirement of upfront payment
• You’ve never heard of the company and it does not have a local, physical address 
• They cannot produce a business license or written information about the company
• They don’t have references, but offer of vague endorsements from neighbors a few streets over from your street

Never hire a contractor on the spot. Before hiring anyone to do any work on your home, get your insurance company to survey the damage.  They will likely provide you with a list of approved repair companies.   You can also verify that the contractor is legitimate by  checking with the Better Business Bureau.

A good contractor will always provide you with a written estimate of the cost of the repairs on your home. Read the estimate before signing and making any kind of payment.  Though some contractors require a deposit to begin work, it should never be more than 25 percent of the total estimate, and you should not pay anything until the materials needed to complete the job are delivered to your home.

If you suspect a scammer, take down their license plate number and car make and model.  Report this information to your state attorney general’s office.

Impersonation of government or insurance company representatives

Many people are desperate following disasters, particularly if they do not have insurance.  Unfortunately, some con artists pose as government officials from agencies such as FEMA (Federal Emergency Management Agency), the Department of Homeland Security, and/or the Department of Health and Human Services, that are responsible for helping disaster victims. These con artists will ask you to share your identification, social security information, and other personal information that can be used to steal your identity.

When seeking government aid, it is safer for you to initiate contact—you are more likely to avoid con artists. But, if a government official approaches you, ask for identification.

Remember, there are no fees when applying for governmental assistance following a disaster.  Any request for fees is fraud.  Never give your social security number out over the phone and do not write it down anywhere unless you are 100 percent sure you are working with a legitimate representative from a governmental agency.

Con artists will also pose as insurance claims adjusters or representatives of insurance companies.  Ask for identification to make sure you are giving information to an agent from your insurance company. They won’t be offended.  They are aware that scam and con artists target disaster survivors.

If you think you may have given out your personal information to a con artist, take steps to protect your identity.

Donation scams

Following disasters, people want to give.  Even those directly affected by disasters may want to give financially to help those worse off. Unfortunately, scammers and con artists know this.  They pose as charitable organizations helping victims of a disaster. Red flags that you are dealing with a fake charity include:

• Requests for donations to be sent over a wire transfer
• Requests for cash donations to be sent through the mail
• An aggressive push for a donation
• Calls from an organization you’ve never heard of or one that has a name close to a better known charitable organization
• Reluctance to give a call back number if you say you’d like some “time to think about making the donation” or that “you want to discuss the donation with another family member”
• Starts the call with a “thank you” for a pledge you don’t remember making
• Requests for personal information
• Guarantees winnings from a sweepstake or drawing in exchange for a donation.  By law, you do not have to make a donation to be eligible to win a sweepstakes.

If you’ve been the victim of disaster fraud or even suspect it, contact:

• Disaster Fraud Hotline at 1-866-720-5721
• Disaster Fraud Fax at 1-225-334-4707
• Disaster Fraud e-mail at disaster@leo.gov.
• Individuals can also report criminal activity to the FBI at 1-800-CALL-FBI or Federal Bureau of Investigation.