The United States Justice Department, along with the Federal Trade Commission and the Consumer Financial Protection Bureau, is warning consumers about those looking to take advantage of natural disasters by engaging in potential fraud, price gouging and collusive schemes.
Scammers quickly exploit weather emergencies and take advantage of people trying to recover or donate to disaster victims. Weather emergencies provide disruptions to the supply chain, which can also provide opportunities for wrongdoers to engage in collusive schemes that inflate prices charged to customers who are under extreme stress and therefore unable to fight back against collusive or anticompetitive prices.
Possible types of natural disaster scams include:
*Fraudulent charities soliciting donations for disaster victims that often imitate the names of charities linked to the disaster;
*Scammers impersonating government officials, offering disaster relief in exchange for personal information or money;
*Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing;
*Price gouging for essential goods and services needed by disaster victims; and
*Businesses using supply chain disruptions as a cover for collusion to overcharge customers.
To avoid scams and frauds while recovering from a natural disaster, remember only scammers will insist you pay for services by wire transfer, gift card, payment app, cryptocurrency or in cash. Avoid anyone who promises they can help you qualify for relief for a fee. You are not required to pay a fee to get disaster relief. Never sign your insurance check over to someone else. Be sure to research contractors and get estimates from more than one before signing a contract for work. Get a written contract for repairs and read it carefully before signing it.
Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, seven days a week.
