Most Common Disaster Scams and How to Avoid Them

Natural disasters are inherently chaotic. Sadly, while communities rally together to rebuild, there’s a darker element that seeks to exploit the chaos for personal gain: scammers who target the victims.

These criminals leverage the vulnerabilities of those affected (and those willing to help), exploiting an emotional time for all.

Understanding how these scams operate and how to avoid them is crucial for everyone. In this post, we’ll delve into the types of scams, how scammers target their victims, and proactive measures you can take to protect yourself and your community.

Understanding Disaster Scams

Scams are fraudulent schemes that arise in the wake of natural disasters like hurricanes, earthquakes, floods, and wildfires. Scammers use various tactics to deceive victims, aiming to steal money, personal information, or both. These scams can take many forms, including fake charities, fraudulent contractors, and phishing schemes.

7 Common Types of Scams Post-Disaster

1. Fake Charities
   • Scammers set up fraudulent charities or pose as legitimate ones to collect donations meant for disaster relief.
   • These scams often exploit the desire to help, using compelling stories and images to solicit funds.
2. Fraudulent Contractors
   • After a disaster, scammers posing as contractors offer services to repair damaged properties.
   • They might ask for a large upfront payment and then disappear without completing the work.
3. Phishing Scams
   • Scammers send emails, texts, or social media messages that look like they’re from reputable sources to steal personal information or install malware.
   • They might claim to offer assistance or updates related to the disaster.
4. Insurance Fraud
   • Scammers might pose as insurance agents or officials to trick victims into providing personal information or paying fake fees to process claims.
5. Price Gouging
   • Some exploit the increased demand for goods and services post-disaster by inflating prices for essential items like food, water, and gasoline. [Editor’s note: Yet one more good reason to stockpile supplies while you can!]
6. Rental Scams
   • Scammers might advertise non-existent rental properties to those displaced by the disaster, demanding deposits and rent upfront before disappearing entirely.
7. Government Impersonation
   • Posing as government officials, scammers might claim victims need to pay for assistance or that they qualify for a nonexistent grant or loan in exchange for giving up personal information.

How Scammers Target Victims

Scammers capitalize on the urgency and chaos following a disaster to identify their victims. They employ various tactics to maximize their success, including:

1. Emotional Manipulation
   • Disasters evoke strong emotions like fear, sympathy, and urgency. Scammers use these emotions to manipulate people into making hasty decisions without proper verification.
2. Exploiting Confusion
   • In the aftermath of a disaster, information can be chaotic and confusing. Scammers exploit this by pretending to be legitimate sources of help or information.
3. Preying on Generosity
   • Many people want to help those affected by disasters. Scammers create fake charities and use emotional stories to solicit donations.
4. Leveraging Technology
   • Scammers use phishing emails, fake websites, and social media to reach a wide audience quickly and efficiently.
5. Using High-Pressure Tactics
   • By creating a sense of urgency, scammers pressure victims into making immediate decisions, like donating money or providing personal information, without due diligence.

[Editor’s note: This is why it’s crucial to identify reputable companies and understand expectations of those involved beforehand. It’s also wise to run everything through your insurance agent, no matter what anyone else says because they (1) need to be in the loop anyway, and (2) probably know more about scams and what’s expected than you or I do.]

How to Identify Scams

Recognizing scams is the first step to avoiding them. Here are some red flags to watch for:

1. Unsolicited Contact
   • Be wary of unsolicited emails, phone calls, or messages asking for donations or personal information, especially if they create a sense of urgency.
2. Lack of Transparency
   • Legitimate organizations are transparent about their operations. Scammers often provide vague information or avoid answering questions.
3. Pressure to Act Quickly
   • Scammers often insist on immediate action, whether it’s donating money, signing a contract, or providing personal information.
4. Unusual Payment Methods
   • Requests for payment via wire transfer, gift cards, or cryptocurrency are common among scammers and should raise a red flag.
5. Mismatched URLs and Email Addresses
   • Check the URLs and email addresses carefully. Scammers often create addresses that look similar to those of legitimate organizations.
6. Too-Good-to-Be-True Offers
   • Offers that seem too good to be true, such as extremely low repair costs or guaranteed government grants, are often scams.
7. Emotional Appeals Without Evidence
   • Be cautious of overly emotional appeals that lack verifiable details about how donations will be used.

[Editor’s note: Even when something “feels” like you’re covered, such as transferring money from your bank account, can end up being a bad idea. ALWAYS check with people who know more about these things than you do, such as discussing why and to whom you’re transferring money with the bank manager before doing so. It couldn’t hurt to also understand if there are any courses for remedy from the bank should something not work out as anticipated.]

How to Protect Yourself

Preventing scams post-disaster requires vigilance and proactive measures. Here’s how you can protect yourself:

1. Verify Before You Donate
   • Research charities before donating. Use websites like Charity Navigator or GuideStar to verify legitimacy.
2. Consult Official Sources
   • Get information from official sources, such as government websites and reputable news outlets.
3. Be Skeptical of Unsolicited Offers
   • Don’t respond to unsolicited calls, emails, or messages asking for personal information or money.
4. Use Secure Payment Methods
   • Use credit cards for donations or payments, as they offer more protection against fraud.
5. Check Credentials
   • Verify the credentials of contractors and insurance agents by contacting local regulatory bodies or checking online reviews.
6. Avoid High-Pressure Sales
   • Be wary of anyone pressuring you to make quick decisions without giving you time to do your research.
7. Monitor Your Accounts
   • Regularly check your bank and credit card statements for any unauthorized transactions.
8. Use Strong, Unique Passwords
   • Protect your online accounts with strong, unique passwords and enable two-factor authentication where possible.
9. Report Suspected Scams
   • Report suspected scams to local authorities, the Federal Trade Commission (FTC), or the Better Business Bureau (BBB).

[Editor’s note: I’d say it’s also wise to seek out local, reputable businesses that you know you might need to contact after a disaster. People like roofers, tree removal services, and general contractors come to mind. If you want to go above and beyond, consider fire restoration services and flood restoration services. And of course, keep your insurance agent in the loop.]

Specific Precautions for Different Scams

Each type of scam requires specific precautions:

1. Fake Charities
   • Check the IRS’s list of tax-exempt organizations.
   • Avoid giving cash; use checks or credit cards for donations.
2. Fraudulent Contractors
   • Get multiple quotes and check references.
   • Avoid paying the full amount upfront; opt for a deposit and staggered payments based on progress.
3. Phishing Scams
   • Do not click on links or open attachments from unknown sources, including phone numbers inside email or text.
   • Verify the sender by contacting the organization directly using a phone number or email from their official website.
4. Insurance Fraud
   • Contact your insurance company directly using a verified number.
   • Avoid sharing personal information over the phone or email unless you initiated the contact.
5. Price Gouging
   • Report suspiciously high prices to local consumer protection agencies.
   • Buy only what you need and avoid panic buying; stockpile what you need beforehand.
6. Rental Scams
   • Use reputable rental websites and check reviews.
   • Visit the property or have a trusted person verify it before making any payments.
7. Government Impersonation
   • Verify any claims or offers by contacting the government agency directly through official channels.

What to Do If You’re a Victim

If you fall victim to a scam, take immediate action:

1. Contact Your Bank
   • Report the fraud and dispute any unauthorized transactions.
2. File a Police Report
   • Report the scam to your local police department to document the fraud.
3. Report to Federal Agencies
   • File a complaint with the FTC, and report charity fraud to the IRS or state charity regulator.
4. Notify Credit Bureaus
   • Place a fraud alert on your credit report to prevent further damage.
5. Seek Support
   • Reach out to victim support organizations for assistance and resources.
6. Educate Yourself
   • Learn from the experience and educate others in your community about the scam.

Community Awareness and Action

Raising awareness in your community is a powerful way to combat scams. Here’s how you can contribute:

1. Share Information
   • Spread awareness through social media, community meetings, and local news outlets.
2. Organize Educational Workshops
   • Host workshops to educate others about identifying and avoiding scams.
3. Collaborate with Local Authorities
   • Work with local authorities to create community watch programs and distribute educational materials.
4. Support Vulnerable Individuals
   • Offer support to elderly or vulnerable neighbors who may be more susceptible to scams.
5. Promote Trusted Resources
   • Encourage the use of verified resources for disaster relief and assistance.

Conclusion

Scams post-disaster are a troubling consequence of natural disasters, preying on both victims and those eager to help. By staying informed, vigilant, and proactive, you can protect yourself and your community from these fraudulent schemes. Always verify information, report suspicious activities, and support initiatives that raise awareness about such scams. Together, we can create a more resilient community that is not only prepared for natural disasters but also equipped to fend off those who seek to exploit them.

By understanding the tactics scammers use and taking preventive measures, you can ensure that your contributions to disaster relief efforts make a genuine difference and that your personal information and finances remain secure. Stay informed, stay safe, and always double-check before you act.