Fraud Schemes Surfacing In North Carolina
Release Date: September 21, 2004
Release Number: 1553-005
» More Information on North Carolina Tropical Storm Frances
» More Information on North Carolina Hurricane Ivan
ASHEVILLE, N.C. -- As flood victims turn their energy and resources to cleaning up, repairing, and replacing their damaged property, trusting people with disrupted lives make an easy mark for con artists. Officials of the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and the North Carolina Crime Control’s Division of Emergency Management (NCC-DEM) caution disaster victims that FEMA inspectors do not ask for personal information such as Social Security or bank account information.
Fraudulent schemes involving con artists going door-to-door to damaged homes, or phoning victims and soliciting personal information such as Social Security and bank account numbers have been reported.
If you think you have been victimized by fraud or suspect fraudulent activity, report it to the North Carolina Attorney General’s office, Consumer Protection Division, via the web site at http://www.ncdoj.com/consumerprotection/cp_about.jsp or call, toll-free within North Carolina, at 1-877-5-NO-SCAM, (1-877-566-7226). For Spanish language, call 1-919-716-0058.
The agencies have also received reports of scammers asking homeowners to pay a fee to be put on a list to get their home repaired. Scammers say the government is going to give the citizen a large grant, but they ask for a processing fee first. Other reports have surfaced of persons pretending to be from the Small Business Association (SBA) and offering to fill out disaster loan applications for a fee. There are no fees for FEMA assistance or SBA loans.
In some instances, fraudulent inspectors have been reported to wear a shirt with an unauthorized FEMA logo. FEMA inspectors and FEMA contractors performing their work wear distinctive photo identification cards always with an identifying picture. SBA inspectors also have photo identification.
FEMA inspectors assess damage but do not hire or endorse specific contractors to fix homes or recommend repairs. When approached to perform any sort of repair work such as repairing roofs, repainting, or making structural repairs, owners should first insist on seeing proper operating licenses and proof of insurance. In the event of major projects, owners should ask for written contracts with specified total costs.
Other points to keep in mind to avoid becoming a fraud victim:
- Verify a contractor’s licensing status, by checking with local officials in your city and county. You can also check with the local Better Business Bureau, homebuilders association or trade council to see if the contracting firm has any unanswered complaints against it.
- Be suspicious of anyone who offers to increase the amount of your disaster damage assessment.
- Ask for proof of insurance. If a contractor is uninsured, you may be liable for accidents on your property.
- Ask for a written estimate and check to make sure it includes all work you expect to have done, as well as taxes and other fees. Keep in mind that some contractors charge for an estimate.
- Ask for a written contract that includes all tasks to be performed as well as associated costs; a timeline and payment schedule; and who is responsible for necessary permits and licenses. Never sign a blank contract.
- Do not give anyone an advance cash payment. Pay by check in order to keep a record and avoid double charges.
- Legitimate contractors normally do not require more than one-third of the total charges as a down payment.
- Ask for a written guarantee that states what is covered, who is responsible and how long the guarantee is valid.
- Make sure the contractor has both disability and worker’s compensation insurance.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA’s continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Wednesday, 22-Sep-2004 08:59:11