Recognizing and Avoiding Recovery Scams After Natural Disasters 

After a natural disaster, the primary concern is often rebuilding and getting life back to normal. Unfortunately, scammers often exploit these vulnerable times, targeting people when they are most in need of help. This guide will help you recognize common recovery scams and provide practical steps to protect yourself and your community. 

The Rise of Post-Disaster Scams 

Scammers target people during the confusion following natural disasters, using deceptive tactics to defraud those seeking assistance. Reports of fraud often emerge after such events, highlighting the urgent need for awareness among affected communities. 

Common Recovery Scams to Watch Out For 

Price Gouging 

Sellers hike prices on essential goods like fuel, water, and generators, claiming shortages to pressure you into overpaying. This unethical practice strains personal finances and limits access to necessary supplies for those in need. 

Home Repair Fraud 

“Storm chasers” offer quick fixes, demanding full payment upfront before disappearing or doing subpar work. They may use fake credentials or official-sounding language to seem legitimate. 

Bogus Charities 

Scammers set up fake websites or impersonate real organizations to solicit donations, often demanding immediate payment via cash, gift cards, or wire transfers. They exploit goodwill to divert funds away from actual relief efforts. 

Imposter Scams 

Scammers pose as officials from government agencies or insurance companies, asking for personal information or fees under false pretenses. Remember, legitimate officials will never ask for payment to provide assistance or process applications. 

Practical Steps to Protect Yourself 

When Hiring Contractors: 

• Avoid Door-to-Door Offers: Rely on trusted referrals from friends, family, or reputable sources. 

• Verify Licenses and Insurance: Check credentials through your state’s licensing board or the Better Business Bureau. 

• Get Multiple Estimates: Obtain at least three written estimates and be wary of bids that are significantly lower than others. 

• Limit Upfront Payments: Never pay more than one-third of the total cost upfront. Schedule payments based on project milestones and make the final payment upon completion. 

• Get Everything in Writing: Ensure contracts include detailed descriptions of the work, warranties, and timelines. 

For Charitable Donations: 

• Research Before Donating: Use tools like Charity Navigator or the BBB Wise Giving Alliance to verify organizations. 

• Be Cautious of Unsolicited Requests: Be wary of high-pressure tactics pushing for immediate donations. 

• Verify Registration: Confirm the charity’s registration with appropriate state agencies or official registries. 

Dealing with Recovery Services: 

• Verify Identities: Confirm the identities of government or insurance representatives through official hotlines or websites. Legitimate representatives will not ask for payment. 

• Beware of Quick Fix Offers: Watch for scammers posing as contractors offering immediate repairs or cleanup services. Always ask for documentation and avoid paying in cash up front. 

Stay vigilant and protect yourself from scams. For more information on staying safe, visit consumer.ftc.gov. 

Seeking Professional Advice and Reporting Fraud 

If you suspect fraud: 

• Report Immediately: Contact local law enforcement, your state attorney general’s office, or the Federal Trade Commission (FTC). 

• Document Interactions: Keep detailed records of all communications with suspected scammers, including names, phone numbers, and correspondence. 

• Consult Professionals: Seek guidance from legal professionals or financial advisors during the recovery process. 

Moving Forward with Confidence 

By staying informed and cautious, you can protect yourself and contribute to the resilience of your community after a natural disaster. Taking these precautions not only safeguards your well-being but also helps prevent fraud from spreading to others. Together, we can rebuild stronger and smarter.