FEMA Warns Of Fraudulent Practices In Aftermath Of Katrina
Release Date: September 9, 2005
Release Number: HQ-05-233
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WASHINGTON, D.C. -- As flood waters recede, opportunities for scam artists rise. The Department of Homeland Security's Federal Emergency Management Agency (FEMA), cautions those affected by Hurricane Katrina to be extra cautious in dealing with anyone who calls or comes to the door seeking work, information or money.
Recent reports that FEMA officials confiscated diesel fuel from a hospital in Louisiana are false. FEMA does not have the authority to confiscate property. This incident has been turned over to the FBI for investigation. All FEMA inspectors and FEMA contractors performing their work wear distinctive photo identification cards. The FEMA logo shirt, jacket or hat by itself is not sufficient proof of identity. The laminated card, always with an identifying picture, is the ultimate validity check. The same is true for the U.S. Small Business Administration employees.
Make sure you see photo identification before trusting anyone representing themselves as a government or law enforcement official.
The FBI also reported a stream of fraudulent online entities seeking funds for Katrina relief. The FBI suggests that recipients not respond to any unsolicited e-mail or telephone calls seeking donations, and go directly to well-known Web sites to donate.
"Be aware, scammers will attempt to capitalize on the popularity of the relief efforts along the Gulf Coast," warn FBI officials. Should you suspect a scam, file a complaint at www.IC3.gov.
A more traditional scam involves unscrupulous contractors who offer to perform work at your home, ask for a large deposit, and never return. Make sure you only do business with reputable, established companies. Some are trying to sell tarps from FEMA or provide installation for a fee. Disaster inspectors and recovery personnel never charge a fee for tarps or their installation.
Some criminals go door-to-door posing as inspectors, asking for personal information such as social security numbers and bank account information. Others are calling homes, saying they are government officials needing personal financial information. Scammers may offer to process your disaster application or provide disaster-related services for a fee.
"This is an extraordinarily difficult time for residents of the Gulf Coast area," said Michael D. Brown, Under Secretary of Homeland Security for Preparedness and Response. "Be careful when you're online, before you sign contracts and when dealing with people representing themselves as officials. If you have doubts, contact your local emergency management office or Better Business Bureau."
Anyone who believes a fraudulent, would-be inspector has approached them should report the incident to Homeland Security's fraud hotline at 1-800-323-8603. This hotline will provide information on how to file a formal complaint for possible investigation and prosecution.
When considering contracting for repair work such as patching roofs, repainting or making structural repairs, owners should first insist on seeing proper operating licenses and proof of insurance. For major projects, owners should get written contracts with specified total costs. Check on the firm's reputation with the Better Business Bureau or Chamber of Commerce. Some local government building departments and trade associations keep lists of contractors who work in the community.
FEMA recommends that residents check references if they are hiring someone they don't know. You also should ask for a written guarantee, pay by check and cancel within three days if something concerns you.
Unfortunately, some also may try to defraud the government. FEMA uses a number of methods to detect fraud among the applicants. An automated system crosschecks information with other agencies and insurance companies to weed out duplicate applications. Field inspections are conducted to verify losses and damages for every person who applies. Potential cases of fraud or misuse are referred to the U.S. Justice Department for prosecution. Such cases may include:
- People who claim residences that are not their primary residence;
- Applicants who leave out their spouse's information when registering;
- Self-inflicted damages;
- Spouses claiming different addresses; or
- People who fail to disclose insurance coverage.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Friday, 09-Sep-2005 11:11:04