Disaster Survivors Should Beware Of Scam Artists
Release Date: September 22, 2004
Release Number: 1558-005
» More Information on West Virginia Severe Storms, Flooding and Landslides
CHARLESTON, W.Va.-- State and federal disaster officials overseeing recovery efforts warn disaster survivors to be alert for scam artists who are preying on the victims of recent storms. Reports of scams from Florida, Ohio, Virginia and from here in West Virginia, are proof that attempting to defraud storm victims is widespread.
“We urge anyone affected by a disaster to check credentials before hiring a contractor or paying for services from an individual or company,” said Lou Botta, federal coordinating officer for the Federal Emergency Management Agency (FEMA). “If they are legitimate and experienced they will be able to provide references. These references should be verified before a check or cash is handed out.”
Here are some of the ways con artists deceive victims:
- Price gouging, especially for necessary items, or for services like tree-cutting or debris removal
- Asking for a “processing fee” to speed up the resident’s federal or state application for assistance
- Requiring a large deposit before beginning repairs and either disappearing or doing shoddy work
- Falsely claiming to be a FEMA or state disaster official to gain access to your home or to get personal information like your social security or bank account number
- Requesting a flood survivor to authorize electronic withdrawals from an account
"It is unfortunate that there are those who take advantage of others who are attempting to get their lives back together after a traumatic event," said Stephen S. Kappa, state coordinating officer. Kappa deplored the false promises and the bogus business practices used to defraud. “Don’t make hasty decisions. Any outlay of $50 or more deserves double-checking,” Kappa said. “Tell people who come to your door that you will call them when you make a decision, no matter what pressure they try to exert.”
Recovery officials suggest that disaster survivors:
- Ask to see an official FEMA or state photo ID and a phone number that can be used to verify the information
- Check with the Better Business Bureau at 1-800-362-0494 or local business trades council to make sure any repair or rebuilding firm has no outstanding consumer complaints filed against it.
- If a scam is suspected call the West Virginia consumer hotline 1-800-368-8808.
The Federal Emergency Management Agency (FEMA) Office of Inspector General (OIG) urges all West Virginia residents with any knowledge of fraud, waste or abuse involving FEMA contracts, programs or personnel to call the Fraud Hotline at 1-800-323-8603. The hotline is in operation 24 hours a day, seven days a week. Written alerts, or complaints, can be made to: Office of Inspector General, FEMA, 500 C Street, SW Washington, DC 20472.
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 09:16:08