Disaster Officials Warn Against Fraud
Release Date: October 5, 2004
Release Number: 1549-028
» More Information on Alabama Hurricane Ivan
MOBILE, Ala. -- The Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and Alabama Emergency Management Agency (AEMA) warn that a system is in place to identify the small number of people who try to cash in on others’ misfortune by misrepresenting themselves as disaster victims in order to receive assistance that is intended for persons who are truly in need.
"Managing a multi-million-dollar disaster always means walking a fine line between speeding service to those who need it and ensuring that taxpayer dollars are not misused," Alabama State Coordinating Officer Bruce Baughman said.
According to Michael Hall, FEMA’s federal coordinating officer, a number of methods are used to detect fraud. An automated system crosschecks information with other agencies and applicants are asked about insurance coverage to weed out duplication of benefits. Field inspections are conducted to verify losses and damages for every person who applies.
Conducting audits and investigating possible fraudulent activities is also standard procedure in all federal disaster operations. Potential cases of fraud or misuse are referred to the Department of Homeland Security’s Office of Inspector General (OIG).
FEMA and the state of Alabama urge anyone with knowledge of fraud, waste or abuse relating to disaster contracts, programs or personnel to call the OIG Fraud Hotline at 1-800-323-8603.
Consumer Fraud
It is an unpleasant fact that disasters sometimes bring out scam artists, price gougers and dishonest operators who try to capitalize on the misfortunes of others. According to the Alabama Attorney General’s office, there are steps that individuals can take to protect themselves against unscrupulous business practices.
As residents rebuild in the aftermath of Hurricane Ivan, Attorney General Troy King advises residents to be on the lookout for fraudulent home repair contractors. King recommends that consumers need to do their homework before spending hurricane recovery funds.
- Try to work with local contractors that you trust.
- Make sure that they are licensed with the Home Builder’s Licensure Board, and that they are bonded and insured.
- Get your estimate and repair agreement in writing.
- The contract should specify materials to be used, provide start and finish dates, and a payment schedule.
- Do not make a large payment up front for the work.
- Never make a final payment until the job has been satisfactorily completed.
- Always shop around and insist on identification if someone tells you that they work with a government agency or utility.
If you suspect that someone is trying to take advantage of you, contact your local law enforcement agency or the Attorney General’s Consumer Affairs division at 1-800-392-5658.
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: Tuesday, 05-Oct-2004 20:59:33