Protect Yourself From Disaster Fraud

Tensions are high after disaster strikes. Hurricanes, earthquakes, wildfires and other emergencies put people in a vulnerable position. More and more, scammers are using disasters like these to prey on innocent people and steal their money. This is what’s known as “disaster fraud.”

Disaster scams can target people affected by natural disasters as well as those who want to lend a helping hand. Scammers use phone calls, text messages, emails and direct mail—and even go door-to-door—to contact disaster victims and people who want to help them. They pretend to offer disaster relief, clean-up assistance or charitable donations to exploit people in need.

Whether you’ve been the victim of a natural disaster or just want to help those who have been affected, watch out for these all-too-common disaster fraud tactics.

Common Tactics of Disaster Fraud Scammers

After a natural or man-made disaster, there’s usually an uptick in fraud reports. Scammers try to take advantage of victims’ vulnerability and the generosity of those who might want to donate to the cause. 

Disaster fraud can show up in different ways, but the goal is the same: to steal your money and/or information. Here are some of the most common types of disaster fraud to watch out for.

1. Government assistance scams  

Some scammers will pretend to work for government organizations that provide disaster relief, such as the Federal Emergency Management Agency (FEMA). They might say you need to pay a fee to apply for emergency assistance, or they’ll request financial information in order to transfer funds. Actually, no fee is required for FEMA assistance, and government employees won’t ask you for money. 

2. Insurance scams

After a disaster, scammers might call or email you and say they’re from your insurance company. They might request personal information or money to process a claim from the disaster. If this happens, hang up and contact your insurance agent directly to discuss any claim or policy information.

3. Home contractor fraud 

Unlicensed, untrained or fake contractors might approach you if your home has been damaged in a natural disaster. These scammers pretend to offer clean-up or repair services. They might demand upfront payment or refuse to provide proof of license or insurance.

4. Fake supply scams

Scammers might target victims of disasters by claiming to sell supplies needed in an emergency. They might make posts on social media or come to your door to sell these supplies. In reality, the supplies will never arrive, and the scammers will simply keep the money you gave them.

5. Rental listing scams

If you had to move out of your home due to a disaster, you might need to quickly find a place to rent for a short time. Watch out for rental listing scams in which fraudsters pretend to be landlords for homes that aren’t really available. They might demand a deposit or rental payment before you get to see the property. Then they disappear, leaving you without the money you paid or a place to stay.

6. Fake charity scams

Scammers sometimes create fake charities pretending to gather donations for disaster victims. They might make a legitimate-looking website, social media accounts and email address to trick people. They also might start donation centers on crowdfunding websites that aren’t verified. 

7. Charity impersonation 

Other scammers might impersonate well-known charities. They might pretend to be an organization by spoofing their phone number and email address. Or, they might create a copycat organization with a similar-sounding name. They gather “donations,” but the money never goes to the victims.

Protect Yourself by Verifying Disaster Relief 

There are many types of disaster fraud to be on the lookout for. Fortunately, you can protect yourself from scams by double-checking information before you act. 

• Ask for identification. If you’re approached by someone claiming to be a government official, always ask for identification. Federal workers carry identification badges, which they’re happy to show you.
• Never pay for disaster assistance. Remember, there’s no fee to apply for or receive disaster assistance from FEMA or the Small Business Administration (SBA). If anyone asks you to pay for financial assistance, it’s a scam.
• Contact organizations directly. If you receive a call, text or email about insurance claims or financial assistance, hang up or don’t reply. Research their contact information and call them directly to verify the request.
• Refuse requests for upfront payment. Be cautious of anyone who demands upfront payment without providing goods or services. Also, avoid paying via wire transfer or gift card. These are payment methods commonly used by scammers because they’re difficult to trace.
• Check references and reviews. Research contractors’ credentials, read reviews and ask for references. You also should ask for proof of license and insurance as well as a contract before paying.
• Research charities. If you want to make a donation to help victims of disaster, look into the charities you want to donate to. Call the charity directly and ask how your donation will be used. You can also check online resources to ensure an organization is legitimate. Try the Better Business Bureau, Charity Navigator or CharityWatch.

If you think you’ve experienced disaster fraud, don’t wait to report it. Contact the Federal Trade Commission (FTC) and the organization that was impersonated.

Navy Federal also has resources to help you protect your finances. Visit our Security Center to learn how to protect yourself from scams and identify theft.