If you pay anyone with a gift card, cryptocurrency, cash app, or wire transfer, youll never see your money again
While weve experienced 13 major storms during this 2024 Atlantic hurricane season, it isnt over yet and thefederal government is warning consumers about another storm or two they might have to face from rip-off artists.
The Federal Trade Commission, the Department of Justice, and the Consumer Financial Protection Bureau alert consumers about those looking to take advantage of natural disasters by engaging in potential fraud or price gouging.
Its typical for scammers to quickly exploit weather emergencies and take advantage of people trying to recover or donate to disaster victims, but the magnitude of both Helene and Milton may raise the stakes.
As Americans seek safety from natural disasters, were hearing troubling reports of price gouging for essentials that are necessary for people to get out of harms wayfrom hotels to groceries to gas, said FTC Chair Lina M. Khan. No American should have to worry about being ripped off when fleeing a hurricane.
If anyone does try to take advantage of the situation, Deputy Assistant Attorney General Manish Kumar of the Justice Departments Antitrust Division said his department has already brought law enforcement partners on board and is ready to act quickly to root out anticompetitive behavior and use every tool available to hold wrongdoers accountable.
Possible types of natural disaster scams
Thescams that anyone whos been impacted by a storm personally or lives in an area thats suffered damage are:
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Fraudulent charities soliciting donations: This is a real honeypot for scammers, so be on the alert for any agency or organization that may imitate the names of charities linked to the disaster. Here is a list of verified charity portals that these government agencies recommend. You should only use these and no other because its possible that scammers may have set up their own charity checker website.
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Scammers impersonating government officials:Scammers may call or go door to door pretending to be government officials, offering disaster relief in exchange for personal information or money. Ask for ID and call the agency to verify the offer before signing anything.
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Scammers promoting non-existent businesses or investment opportunities: Another tried and true storm scam comes from contractors or builders who say that they can repair or replace a roof, rebuild a home, or flood-proof a residence. Again, its ok to take their information, but check them out on the web, with the Better Business Bureau, or your state attorney generals business listing database.
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Price gouging for essential goods and services needed by disaster victims: Unfortunately, scammers will often try to take advantage of people's desperation in the wake of a disaster by price gouging essential goods and services. Here are some of the most common targets:
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Emergency supplies: These can include things like bottled water, non-perishable food, batteries, flashlights, first aid kits, radios, and hygiene products.
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Gasoline: Fuel is often in high demand after a disaster, as people may need to evacuate or travel to find resources.
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Shelter: Hotel rooms and other temporary housing options can become scarce, and scammers may try to charge exorbitant rates.
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Building materials: If homes are damaged, materials like plywood, tarps, and generators will be needed for repairs, and prices may be inflated.
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Cleanup services: Disaster recovery often involves debris removal and cleanup, and unscrupulous individuals or companies may overcharge for these services.
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Medical supplies: Essential medications, bandages, and other medical necessities may be subject to price gouging.
It's important to be aware of these potential scams and to report any instances of price gouging to the authorities. Remember that legitimate businesses and organizations will not exploit disaster victims for profit.
Avoid gift cards,cryptocurrency, payment apps, wire transfer
If you're recovering from a hurricane or another natural disaster, remember that only scammers will insist you pay for services by wire transfer, gift card, payment app, cryptocurrency, or cash. Why? Because theres no way you can get that money back.
Avoid anyone who promises they can help you qualify for relief from the Federal Emergency Management Agency (FEMA) for a fee. Thats a scam, the agencies said.
FEMA will never require you 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.
Government agencies can help
All three of these agencies have a vested interest in consumer protection and its worth every click, social media post, article, and checklist they provide to keep yourself and your money safe.
Consumers can find additional information on how to avoid scams, as well as how to prepare for and respond to natural disasters on the FTC's website. The CFPB has a disaster and emergencies toolkit that provides guidance on handling your finances if you are preparing for, recovering from, or rebuilding after a hurricane, tornado, wildfire, or other emergency. And if you catch a whiff of a scammer, the agencies want to hear about it. You can submit a complaint about a financial product or service at consumerfinance.gov/complaint.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-14 00:12:09
