How To Avoid Scams After Weather Emergencies and Natural Disasters

Personal Finances 5 min read

Authors

Chelsea Mars
VP, Content Marketing & Acquisition Manager

In the aftermath of extreme weather events or natural disasters like Hurricane Helene, communities come together to rebuild and recover. Unfortunately, these challenging times can also attract scammers who prey on vulnerable individuals, taking advantage of confusion and urgency. As we support our associates and customers in affected areas, it’s crucial to stay vigilant and informed. Here, we’ll break down common scams after disasters and offer tips on how to protect yourself and your family.

Potential Scam Scenarios

Scammers use a variety of tactics to exploit people during the aftermath of disasters. Here are some of the most common scams to watch out for:

1. Imposter Scams
Scammers often pose as safety inspectors, government officials, or aid workers, claiming they are there to help. They may ask for sensitive information or upfront payments for services, such as inspections or applications, that are usually provided for free by legitimate organizations.

2. FEMA Impersonators
One common scam involves individuals impersonating FEMA (Federal Emergency Management Agency) representatives. They may offer to help you with your FEMA application but will charge an upfront fee, which is not a part of any legitimate FEMA process. FEMA does not charge for applications or assistance.

3. Home Improvement and Debris Removal Scams
After a natural disaster, many people need repairs to their homes or businesses. Scammers may pose as contractors offering quick debris removal or repairs but will often demand large sums of money upfront or perform subpar work, leaving victims with little recourse. They may also disappear after taking payment, leaving your property in worse condition.

Recognize the Signs of a Scam

While scammers can be clever, there are warning signs that can help you spot fraudulent behavior. Keep an eye out for these red flags:

No Licensing Required: Scammers may claim they don’t need a license to do the work, which is false. Legitimate contractors should always have a valid license and insurance.
Pressure to Sign a Contract Immediately: Scammers often offer a “discount” or say they can only fit you in if you sign a contract on the spot. This tactic is meant to pressure you into making a decision without careful consideration.
Signing Over Your Insurance Check: If a contractor asks you to sign over your insurance claim check, beware. This can leave you vulnerable if the work is incomplete or of poor quality.
Full Payment Upfront: Asking for full payment before any work is completed is a big red flag. Reputable contractors typically ask for a partial deposit, with the balance due upon completion of the work.
Unusual Payment Methods: If someone asks you to pay by wire transfer, gift card, or cryptocurrency, it’s likely a scam. These payment methods are difficult to trace and recover if the contractor disappears.

Ways to Avoid a Scam

Protecting yourself after a natural disaster requires both awareness and due diligence. Here are steps you can take to reduce the risk of being scammed:

1. Know that FEMA Doesn’t Charge Application Fees
FEMA provides disaster assistance for free, and they never charge for processing your application. If someone asks for money to help you qualify for FEMA funds, it’s a scam. Always verify through FEMA’s official website or hotline to ensure you’re dealing with legitimate representatives.

2. Verify Your Insurance Coverage
Don’t rely on a contractor to tell you what your insurance covers. Always contact your insurance company directly for details about your policy. Additionally, never sign over your insurance check to a contractor. You want to maintain control over how your funds are spent to ensure the work is completed properly.

3. Be Skeptical of Immediate Offers for Repairs or Clean-Up
In the rush to clean up or make repairs, it can be tempting to accept the first offer that comes along. However, unlicensed contractors and scammers often show up in disaster-affected areas promising fast fixes. Be cautious of anyone who demands cash upfront or won’t provide copies of their license, insurance, or a written contract. If they refuse to give you any of these, walk away.

4. Get a Written Contract and Read it Carefully
Contract requirements vary by state, but even if your state doesn’t mandate a written agreement, always request one. A contract should outline the scope of work, materials to be used, payment schedules, timelines, and any guarantees. This provides you with legal protection if the contractor fails to deliver on their promises.

Take Action: Protect Yourself and Your Community

As we work together to rebuild after disasters, staying informed is the best defense against scams. Share this information with friends, family, and neighbors so that everyone in your community is aware of these fraudulent schemes. If you suspect you’ve encountered a scam or have been the victim of fraud, report it to local law enforcement, the Federal Trade Commission (FTC), or FEMA’s Disaster Fraud Hotline.

Recovering from a natural disaster is hard enough without having to deal with the fallout from scammers. By recognizing the signs and taking the proper precautions, you can help ensure that your recovery is smooth, safe, and scam-free.

Additional Resources:

Stay safe, stay informed, and protect yourself from those who might try to take advantage during these challenging times.

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How To Avoid Scams After Weather Emergencies and Natural Disasters

Authors

We're here to help

Potential Scam Scenarios

Recognize the Signs of a Scam

Ways to Avoid a Scam

Take Action: Protect Yourself and Your Community

We're here to help

Authors

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